Important PAYE information

9 Jan 2012     Last updated: 20 Jun 2014

HMRC appears to be becoming more stringent in the application penalty charges for employers who haven't ensured that payments are made in time to clear on due dates.

NICVA recently heard from a community group about penalty charges for late PAYE deductions. The group was unsuccessful in an appeals process. 

Reminder of payment deadlines

Quarterly Payment deadline:  19 January 2012

Small employers (deductions less than £1,500 per month) for pay periods in the quarter ending 5 January 2012.

Other employers (deductions more than £1,500 per month) for pay period(s) in month ending 5 January 2012.

Cheque payments must have cleared to HMRC by this date, otherwise penalty charges (listed below) may be incurred.

For paying electronically, funds must be cleared by 20 January 2012.

You may have only one late payment in any tax year to avoid penalties, provided the liability is cleared within 6 months.

Penalty charges

Number of times payment late in year

Penalty percentage

Amount against which penalty percentage applied


No penalty if payment less than 6 months late

Total amount late in tax year exclusive of amount of first late payment.

2-4 payments


5-7 payments


8-10 payments


11 or more



Additional penalties: May be incurred if a late monthly or quarterly payment is not cleared in full after the 6 month deadline. This will amount to 5%. If failure to pay exceeds 12 months an additional 5% may be charged.

These are in addition to those within the table above and will be applied even if only one payment in the year is late.

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