HMRC PAYE Fines

[Scrag Meister]

I have a calendar setup so that my quarterly PAYE payments are made midway through the month that they are due at the end of.

Simples. It's worked for me since I started contracting.

As has been said it changed April last year.

[Greg@CapitalCity]

The thing is, its impossible for the HMRC to see how much PAYE/NI should be paid each month/quarter - its only the employers annual PAYE return that summarises the payroll info for the year. So if total payments received for the year = total payments due as reported in the P35, then the HMRC will most likely be happy.

That maybe what your 'expert' is referring to, however, if the HMRC were to audit the payroll records, this 'little known trick' will be exposed, and penalties would be due. My advice would be to pay PAYE/NI when its due (strange concept aye??)

[escapeUK]

I'll have a hunt through the other forums too! Thanks.

[SueEllen]

You can also do it quarterly. Saves time.

It takes a second and I will completely forget to do it if I have to do it quarterly.

Though if they move the link it will take longer.

[SueEllen]

Yeah, its probably always best to check. But not sure if you always get the right answer.

Unfortunately if the someone wants to keep their head in the sand after you have warned them there is nothing you can do especially if they can't be bothered to hire an accountant to ask as well.

If you google "paying paye late" apart from HMRC plenty of information comes up in accounting and business forums about people who have been told, warned or given fines in 2010 and 2011.

[Kugel]

Personally as my PAYE is nil all I have to do is make sure I go on the internet and submit a nil PAYE return every month.

You can also do it quarterly. Saves time.

[escapeUK]

Yeah, its probably always best to check. But not sure if you always get the right answer.

[SueEllen]

A strange one today, its been claimed you can pay your PAYE late every month as long as you pay the last one of the tax year on time you dont get fined.

Copy and paste the item into an email with the link from HMRC?

And tell the person claiming this nonsense to always verify everything with HMRC themselves as it's ultimately their legal responsibility if things are screwed up.

[escapeUK]

That used to be true, but not since April 2011. Now, you need to pay on time and if you're late more than once you'll get a fine at year end based on the number of times late and the total PAYE due.

That's what my reading seemed to say the document Im looking at says May 2010 btw

HM Revenue & Customs: PAYE/National Insurance late payment charges

[Clare@InTouch]

That used to be true, but not since April 2011. Now, you need to pay on time and if you're late more than once you'll get a fine at year end based on the number of times late and the total PAYE due.

[SueEllen]

HMRC have been clamping down on businesses paying their PAYE late and started fining businesses last year. - I only know as I was on another forum and 3 people who did accounts for their businesses were complaining.

Personally as my PAYE is nil all I have to do is make sure I go on the internet and submit a nil PAYE return every month.

[escapeUK]

A strange one today, its been claimed you can pay your PAYE late every month as long as you pay the last one of the tax year on time you dont get fined.

I think this is wrong, what does anyone else think?