Make sure you aren’t caught out by late-payment penalties
Accountants Moore Stephens have issued a reminder that late-payment penalties could now be implemented where monthly or quarterly PAYE are made late or not paid in full.
From May this year, HM Revenue and Customs can apply penalties once there have been one or more late payments during the tax year.
Those who pay by post should now ensure they allow sufficient time for the payment to reach HMRC; at least three, preferably five, working days so that the payment is received by the 19th of every month.
Gerard Mallaghan of Moore Stephens in Corby said: "The penalty will depend on the amount of times payments are late during the tax year. The penalty percentages start off at one per cent for two to four late payments, increasing to four per cent for 11 or more.
"The penalties will not be charged straight away, but HMRC will keep a record of all late payments during the tax year and then calculate the final penalty after the end of the tax year. They will not routinely send out notifications during the year, but will notify employers before a penalty is charged."
HMRC is trying to encourage taxpayers to make payments electronically as it avoids delays and there is the certainty that money has reached their account in time. Those making payments in this manner should ensure that PAYE payments reach HMRC’s bank account by the 22nd of the relevant month.
For further information call 01536 461900.
Posted by: Moore Stephens
