Paying PAYE on time - May 2010
From April, 2010:
H M Revenue and Customs are to charge a penalty if you do not pay the PAYE due each month, on time and in full.
The new penalties will apply to all employers if they make more than one PAYE payment late. The penalties will be a percentage of the amount you pay late. They will start at 1% and increase to 4% depending on the number of late payments in a year.
There are also penalties of 5% if any of the PAYE due is still not paid after 6 months and again after 12 months.
H.M. Revenue and Customs may accept a reasonable excuse for late payment, so if you are unable to pay they should be advised immediately. You would also have the right to appeal against a penalty if you disagree with their decision to impose it.
NIL liability for a month or quarter should be notified to H.M. Revenue and Customs to avoid penalty notices being raised.
payment deadlines
- 19th of the month (when paid by post)
- 22nd of the month (cleared electronic payments)
Take care to ensure that payments are made early enough to cover weekend/bank holiday periods and any delays with the postal service. These would not be considered as a reasonable excuse.
If your payments average less than £1,500 per month you can still qualify for quarterly payments without penalty.
To avoid penalties, please pay the right amounts on time.
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