| HMRC are warning
employers that from May 2010 they may have
to pay a penalty if they do not pay their
PAYE on time. These are generally due each
month, on time and in full.
HMRC will implement late payment
penalties for payments due from May 2010.
From then on, employers may have to pay
penalties if they make more than one PAYE
payment late in a tax year. The new
penalties will apply to all employers,
including large employers (those with more
than 250 employees) who currently are
subject to a Mandatory Electronic Payment
surcharge.
HMRC are advising employers to let them
know if they are likely to have difficulty
making a payment on time, so that
arrangements can be made and penalties can
be avoided. Their guidance states that
where employers enter into 'time to pay'
arrangements, before the liability becomes
due, no penalty will be charged. Penalties
for late payment start at 1% increasing to
4% depending on the number of late
payments in the year. Extra penalties will
be added where liabilities our outstanding
for a further six and then 12 months.
Internet link:
Employer Bulletin |
