Don't get caught out by the new PAYE penalties!
06 April 2010
HM Revenue & Customs (HMRC) has introduced a new PAYE tax penalty regime to employers. From 6 April 2010 HMRC will now charge penalties if PAYE is paid late, which will apply if the payment is only one day late. Penalties will come into force from May 2010 onwards. This will include tax, national insurance contributions, construction industry scheme deductions and student loan deductions. The new late payment penalties apply to all employers and contractors that do not pay on time.
How much will the penalties be?
HMRC will not be sending out penalty notices for the tax year 2010-11 until April 2011. This means that you could go a whole year and be unaware that you have attracted a penalty. It is imperative that you pay all of your PAYE liability on time.
The amount of penalty depends on whether the payment is due monthly, quarterly or annually.
Monthly and quarterly payments - penalties will start at 1% of the late amount and will increase to 4% depending upon how many times you pay late.
Monthly and quarterly payments more than 6 months late - penalties of 5% of the amount that is late will be charged on any monthly or quarterly payments more than six months late. Further penalties of 5% will also be charged if payment has still not been made after 12 months.
Annual payments - HMRC may charge up to 3 penalties of 5% of the amount that is late, depending upon the length of time that the amount is not paid in full.
If you need any assistance, please do not hesitate to contact our Payroll Specialists. Click on the link below to take you to our Payroll section.
www.howsons.com/site/accountant/services_business_support.asp
How much will the penalties be?
HMRC will not be sending out penalty notices for the tax year 2010-11 until April 2011. This means that you could go a whole year and be unaware that you have attracted a penalty. It is imperative that you pay all of your PAYE liability on time.
The amount of penalty depends on whether the payment is due monthly, quarterly or annually.
Monthly and quarterly payments - penalties will start at 1% of the late amount and will increase to 4% depending upon how many times you pay late.
Monthly and quarterly payments more than 6 months late - penalties of 5% of the amount that is late will be charged on any monthly or quarterly payments more than six months late. Further penalties of 5% will also be charged if payment has still not been made after 12 months.
Annual payments - HMRC may charge up to 3 penalties of 5% of the amount that is late, depending upon the length of time that the amount is not paid in full.
If you need any assistance, please do not hesitate to contact our Payroll Specialists. Click on the link below to take you to our Payroll section.
www.howsons.com/site/accountant/services_business_support.asp
