Michael Paul Accountants Northamptonshire – PAYE / National Insurance Interest & Penalties
In a series of articles Paul from Michael Paul Accountants Northamptonshire looks at PAYE & National Insurances payments and deadlines including interest charged on late payments, notifying HMRC if no payments are due and what to do if you have any problems or queries. This articles explains interest and penalty charges for late payments.
Interest
Interest on late payments of PAYE & NIC is charged by HMRC daily by calculating the number of days by which a payment is late and applying the relevant HMRC interest rate.
Penalties
HMRC may charge late payment penalties if the PAYE/NIC due each month, or quarter is not paid on time and in full. The late payment penalties apply to all employers not just the large ones.
The first time in the tax year HMRC think that your PAYE payment is late they may send you a warning letter which will be issued about two weeks after the payment date.
The letter is only to let you know that HMRC think you have made a PAYE payment late and that a penalty could be charged. It is not a penalty notice in itself.
The letter will also:
- explains how to avoid a penalty in the future
- reminds you to pay – if you have not already paid by the time you receive the letter
Importantly, it does not mean a penalty will definitely be charged, and you may get a penalty even if you do not get a letter.
At Michael Paul Accountants Kettering, Corby, Northampton and Market Harborough are conveniently located near to our premises in Lamport although we have clients from all over the UK. We are a firm of Chartered Certified Accountants ensuring you receive a professional and competent service at all times. We specialise in small businesses, medium sized businesses, sole traders, partnerships and individuals who have to file a tax return.
If you need any advice regarding PAYE or any other accounting or taxation matters please don’t hesitate to contact us.
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Michael Paul Accountants Northamptonshire – PAYE / National Insurance Payments & Deadlines
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