Contact Us

You will not be charged a penalty if only one PAYE amount is late in a tax year - unless that payment is over 6 months late.

Thereafter, the amount of the penalty will depend on how much is late and how many times your payments are late in a tax year. The table below shows how the penalties are calculated:

Number of defaults in a tax year

Penalty percentage

Amount to which penalty percentages apply

1-3

1%

The total amount that is late in the relevant tax month (ignoring the first late payment in the tax year)

4-6

2%

7-9

3%

10 or more

4%

 

HMRC will only send one warning letter; the first time in the tax year they think your PAYE payment is late. Although you may receive an online generic notification notice every time they think you are making payments late. These letters are issued about two weeks after the payment due dates.

In-year interest will also apply on all amounts unpaid from the relevant due date to the date of payment.

If you agree that you have made a late payment, you should make sure you pay on time and in full in future. Late payment penalties are charged on an escalating scale, so making payments in full and on time will reduce the amount of any potential penalty.

If you experiencing difficulties in keeping on top of your responsibilities as an employer, please feel free to contact your local TaxAssist Accountant who would be happy to manage the payroll on your behalf.

Date published 30 May 2014

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

Choose the right accounting firm for you

Running your own business can be challenging so why not let TaxAssist Accountants manage your tax, accounting, bookkeeping and payroll needs? If you are not receiving the service you deserve from your accountant, then perhaps it’s time to make the switch?

Local business focus icon

Local business focus

We specialise in supporting independent businesses and work with 100,000 clients. Each TaxAssist Accountant runs their own business, and are passionate about supporting you.

Come and meet us icon

Come and meet us

We enjoy talking to business owners and self-employed professionals who are looking to get the most out of their accountant. You can visit us at any of our 409 locations, meet with us online through video call software, or talk to us by telephone.

Switching is simple icon

Switching is simple

Changing accountants is easier than you might think. There are no tax implications and you can switch at any time in the year and our team will guide you through the process for a smooth transition.

See how TaxAssist Accountants can help you with a free consultation

0800 0523 555

Or contact us