Important PAYE information
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.
Number of times payment late in year
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.
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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