Penalties on PAYE and NIC
HMRC has issued a note setting out its position on charging penalties on PAYE amounts that are paid late.
For these purposes PAYE includes:
- monthly, quarterly or annual PAYE
- student loan deductions
- Construction Industry Scheme (CIS) deductions
- Class 1 National Insurance contributions (NICs)
- annual payments of employers’ Class 1A and Class 1B NICs.
The first failure to pay on time does not count as a default. Thereafter the penalty position and rates are:
|Number of defaults in a tax year||Penalty|
|10 or more||4%|
Additionally, daily interest will continue to accrue on all unpaid amounts from the due and payable date to the date of payment.
A further 5% is charged if payment is 6 months late and a further penalty of 5% will be charged if you have not paid after 12 months.
These additional penalties apply even where only 1 payment in the tax year is late.
Date: 8th September, 2014
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