DON'T BE LATE WITH PAYE PAYMENTS (07/06/10)
With HMRC’s new penalty scheme for late PAYE payments now in force, Burgess Hodgson is reminding businesses to make sure they pay on time – or risk a surcharge up to 4% of the payment due.
In the past, provided the year's PAYE was paid by the last PAYE payment date of the tax year (19 April), no interest or penalties were charged. From 2010/11, this is no longer the case.
Penalties will now be imposed for each late payment in the tax year, except the first one (unless it is more than six months late).
The surcharge covers late paid Income Tax, National Insurance, student loan deductions and deductions under the Construction Industry Scheme.
HMRC may charge penalties of 5% of the amount that is late on any monthly or quarterly payments more than six months late. It may also charge further penalties of 5% if you have still not paid after 12 months.
• to download our most up-to-date factsheet on PAYE penalties, click here