PAYE/NIC/SUBCONTRACTOR 2010/11 Payment Overdue Letter?!?!?!?

**Clare@InTouch** · 4 December 2010, 11:45

Hi Ella,

HMRC are sending out a lot of these letters at the moment because they are intending to start charging interest on late payments (which they've never done in the past).

If you pay yourself wages you will have a PAYE scheme, and this requires payments of Tax & NI each quarter - 19th January, April, July and October as well as a year end return called a P35 that's completed each April. The level of wages you pay will determine the level of PAYE due. If you don't pay wages, or pay at a level of around £5,712, then nothing will be due and it's just a case of telling HMRC that.

Does any of this apply to your company?

**craig1** · 4 December 2010, 11:54

Over the years, I've had a number of letters from HMRC (or predecessors) containing errors. My accountant at the time of the first one told me to contact HMRC personally asking them to verify that it was sent in error, that you have no overdue payment and to ensure you record the reference number generated while asking for a letter to be sent confirming it's an error. This is the only truly guaranteed way to make sure that this won't come back to bite you.

My experience with the HMRC business helpline people is that they're very competent and helpful in the great majority of cases.

**VectraMan** · 4 December 2010, 12:38

I've had a number of these thanks to HMRC getting the months wrong. I used to pay PAYE at the end of every month along with my salary, but several times they allocated that to the previous month, despite the fact I'd already paid PAYE for the previous month, and then sent me an overdue payment letter for the current month, even though I'd already paid. It happened in April once with them allocating a payment to the wrong year - which prompted them to send me both an underpayment notice and overpayment notice with the same amount.

Now I make sure I don't pay PAYE until at least the 10th of the month and things have been going much more smoothly.

**Bumfluff** · 30 April 2012, 19:42

Originally posted by VectraMan View Post

I've had a number of these thanks to HMRC getting the months wrong. I used to pay PAYE at the end of every month along with my salary, but several times they allocated that to the previous month, despite the fact I'd already paid PAYE for the previous month, and then sent me an overdue payment letter for the current month, even though I'd already paid. It happened in April once with them allocating a payment to the wrong year - which prompted them to send me both an underpayment notice and overpayment notice with the same amount.

Now I make sure I don't pay PAYE until at least the 10th of the month and things have been going much more smoothly.

I've just gone one of these letters, I was sure I paid the last quarters PAYE and checking my limited company statements I can clearly see I did I paid it in March not sure if thats an issue paying it in March as apposed in April when the deadline was the 19th ? Checking the 13 diget reference number my accountant states I needed to quote when making payments I used the correct one they gave they state to save this reference in online banking for future so is it safe to assume these 13 diget don't change ?

**Contreras** · 30 April 2012, 22:00

Originally posted by Bumfluff View Post

... I can clearly see I did I paid it in March not sure if thats an issue paying it in March as apposed in April when the deadline was the 19th ? Checking the 13 diget reference number my accountant states I needed to quote when making payments I used the correct one they gave they state to save this reference in online banking for future so is it safe to assume these 13 diget don't change ?

"If you ever pay early or late or make more than one payment for the same period, you need to add four numbers to the end of your Accounts Office reference to tell HMRC what tax year ending and tax month your payment is for. Your reference should then be 17 characters long with no spaces between."

Here: HM Revenue & Customs: PAYE and Class 1 NIC - current year reference checker

**Contreras** · 30 April 2012, 22:48

Originally posted by Ellla View Post

My concern is, how do I know this is true? I'm always uncomfortable just doing as I'm told, despite me paying for his professional advice....

Well there's no harm in phoning HMRC yourself!... number at the head of the letter.

Can someone advise what criteria determines the need for this payment in the first place please? Should I be worried? Has anyone else heard of this error being made?

I assume this is the officiously worded letter starting with "Our records show that your PAYE payment is overdue. Please pay now."

HMRC send these harassment letters even where no payment is due so it's not necessarily something to be worried about.

If you owe nothing and HMRC are not told about it then the system will keep issuing these letters each quarter. Filing nil-returns is just a few clicks on the HMRC site but I guess your accountant should be doing this (assuming there is nothing to pay that is).

So - are you paying only a minimal salary in order to be below the threshold where NI or tax is due?

Fwiw, I filed nil-returns last year but still received the letter despite this.

**gertysingh** · 30 April 2012, 23:24

Agree with all the previous posters. I have found HMRC very helpful. Call them directly.

For what ever reason, accountants I have dealt with seem to portray HMRC and Companies House as the school teachers one should not speak with!

**Sockpuppet** · 1 May 2012, 08:11

Its why I like using billpay. FWIW I've found HMRC very fair in the past. I paid 5 days late and heard nothing. I suspect they give a few days grace for smaller companies.

**psychocandy** · 1 May 2012, 09:44

I've had a few of these letters - HMRC seem to send them out at a moments notice.

I always forward to my accountant. Most of the time, the payment/PAYE return has been done and its crossed or whatever. Never had a problem so far.

However, I always make a point of advising my accountant of this. My argument being that if they say its OK and its all sorted and, subsequently, it hasn't been and I get fined, then they will be compensating me for said fine.

I had this with last useless accountant on more than one occasion and not just PAYE. Mate of mine who went with same accountant had more hassles than me. It turned out accountant was actually doing about 10% of the stuff he said he'd done. (dont get me started on that one - hes still on PCG certified list!)

Saying that though my current accountants (NW) are great and always seem on top of things.

PAYE/NIC/SUBCONTRACTOR 2010/11 Payment Overdue Letter?!?!?!?