PAYE – Late Payment Penalty Alert
4th December 2013
If you do fall into arrears with your PAYE payments, you should contact HM Revenue & Customs as soon as possible and request that any payments you make are allocated against your current liability in preference to any outstanding amounts, as this is not done automatically by the Tax Office.
By requesting that the payments are allocated in this way, you should hopefully prevent your business from incurring additional PAYE payment defaults and mitigate the penalty charges.
HM Revenue and Customs are now able to impose penalties based on a percentage of the PAYE overdue, up to a maximum of 4% and the penalties can be charged even if a payment is only one day late.
As you can imagine, it is easy to accumulate significant penalties over a short period of time.
