New rules on the late payment of PAYE come into force in May to cover the tax years 2010-2011 and beyond.
HMRC has issued a new set of FAQs (Frequently Asked Questions) to help businesses understand what they can and cannot do, and highlight what the penalties for late payments will be. Fundamentally they will not accept many excuses for late payment because they see it is an anti-competitive act.
Penalties will start to accrue as a percentage of the amount owed on a sliding scale if you are late with more than one payment in a tax year. There are additional penalties if payments are late by more than 6 months and further penalties if payments are late by more than 12 months. After that HMRC will probably resort to court action.
If you are finding the management of PAYE or other taxes an issue in your business: we can help.
Give us a call on 01384 235549 or email us at info@lewissmith.com to arrange a free consultation.
Lewis Smith & Co – Accountants for Wolverhampton businesses
