As stated in a previous article, penalties for late PAYE payments have now been introduced.

It is important that payments are made to HMRC on time or if no payment is due that a nil payslip is submitted to HMRC by the due date by either post or online.

A summary of the original post is below.

From 5 May 2010, the end of the first month in the 2010/2011 tax year, all employers and contractors will be subject to a penalty regime for late payments. Penalties will be charged for late monthly, quarterly or annual payments of:

• tax
• National Insurance Contributions
• Construction Industry Scheme deductions
• Student Loan deductions.

In year payments and the Class 1A National Insurance payment relating to P11D benefits (for 2010/11) will need to be made on time and in full. HM Revenue & Customs (HMRC) have confirmed though that one late payment in the tax year will not result in a penalty as long as it is not more than six months late.

PAYE penalties will be worked out on a proportion basis of the amount that is late.  The later the payment the bigger the percentage will be.

Making a PAYE payment to HMRC can be made in various ways and the due date for payment can vary depending on your payment method as making a payment electronically provides additional time.

If no amounts are due for a particular month or quarter a nil payslip should be sent by the payment due date, either by post or by sending a notification of a nil payslip online, to avoid any unnecessary penalties. To do this online you will need your accounts office reference number. To send by post you will need the yellow Employers Payslip Booklet.

If you have any questions or would like to find out more please either contact us or review the PAYE penalties information on the HMRC website.