Some employers have been caught out by HMRC introducing penalties from 1 April 2010 for late payment of PAYE and NIC.  Although HMRC insists that the introduction of the automatic penalty regime was well publicised it did not send out any notices warning employers that they had paid late during the 2010/11 tax year and many employers will have been surprised to have received penalty notices during the last couple of months.

The fines can be as much as 3% of the PAYE and NIC which was paid late and this is a fixed penalty regardless of whether the payment was made a month late or just a day late.  It is possible to appeal against the penalty but the reason for late payment must fall within HMRC’s strict definition of ‘exceptional circumstances’ such as the sudden, serious illness of the person responsible for making the payments.  Just being busy or misreading the calendar when determining when to make the payment will not be sufficient excuse to avoid the penalty.

Because HMRC did not send out letters once a payment had been made late in 2010/11 some companies continued to pay late throughout the tax year and have only just been made aware of their error by receiving penalties for multiple late payments – which could amount to hundreds or even thousands of pounds.

With HMRC continuing to extend its financial penalties for late submission of returns or payments by both employers and taxpayers it is important that companies and individuals know the rules.  If you want help understanding what returns and payments you need to make to HMRC then give Pemberley Accounting a call.  With their knowledge and experience they will help you avoid any penalties from HMRC by understanding the various deadlines which must be met.  Your first consultation with Pemberley Accounting is free so give Katy a call today on 07810 158812.