FMB Taxation expert Liz Bridge, warns members on the punishing fines for late payment of PAYE.
Do you PAYE by the 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 four percent 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 does 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 one percent 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 four percent of their whole annual PAYE payments.
