PAYE Penalties
Watch out! New PAYE Penalties
PAYE, which is Tax and National Insurance, due on wages and salaries are payable to HM Revenue and Customs by the 19th of the following month. From 6th April, if these payments are late, HMRC can now impose a penalty charge.
The penalty charge is calculated on a sliding scale:
First late payment in the tax year will not be charged, for 2-4 late payments the penalty is 1% of the amount due, for 5-7 late payments it is 2%, for 8-10 it is 3% and 11-12 it is 4%.
Furthermore, there is an additional penalty of 5% of the amount due if the payment is overdue for more than 6 months and another 5% if it is still outstanding for over a year.
Â
Submitted by Mark Brooker on Sunday 25th April 2010