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HMRC Tax Guides
FMB Taxation expert warns members on the horrible fines for late payment of PAYE
Do you PAYE by 19th of each month? You must make sure you do as there is no good excuse except death or serious injury! There is now a penalty regime in place which will fine you up to 4% of all the PAYE you have owed in the year if you pay just one day late every month. There may be no warning.
Everyone is expected by law to pay PAYE on time. HMRC do not need to warn those that pay late that they may be penalised. The size of the penalty depends on the number of times you are late – once in a year is free, twice and the penalty is 1% of ALL the PAYE tax you paid in the whole year. It gets worse. There are a lot of firms who always pay PAYE just a day or so late every month. They will be asked for a penalty of 4% of their whole annual PAYE payments.
FMB Taxation Expert Liz Bridge can tell you more if you are worried. Contact Liz on 020 8874 4335.
VAT rate change to 20%
The standard rate of VAT goes up to 20% on the 4th January 2011 - see here for further information
Reduced rate of VAT on the installation of energy-saving materials and systems
You can pay the reduced rate of VAT at 5% on the installation of some energy saving materials and systems in residential accommodation, or in a building intended for use solely for a relevant charitable purpose. However, if you supply energy-saving materials without installing them your supply is at the standard rate.
The reduced rate also applies to the grant-funded installation of certain heating equipment (in the sole or main residence of a qualifying person), this includes the price of the equipment itself. However, if you supply heating equipment without installing it your supply is standard-rated, even if it is grant-funded.
See HMRC VAT Notice 708/6 (November 2011) for further information.
