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End of the line

24 March 2010 / Anne Redston
Issue: 4248 / Categories: Comment & Analysis , Admin , Income Tax
ANNE REDSTON looks at HMRC’s new system for PAYE penalties


  • New penalties for late paid PAYE liabilities.
  • No penalty for the first late payment.
  • Pay oldest outstanding PAYE first.
  • HMRC’s risk-based approach.
  • Reasonable excuse for late payment.

PAYE is a humdrum tax and readers of Taxation may be tempted to skip this article searching instead for sexier topics such as avoidance planning or offshore disclosure. This may be a mistake.

The law is changing and employers could suffer penalties of up to 14% a year of their PAYE construction industry scheme (CIS) National Insurance contributions and student loan repayments.

If you have clients who:

  • use PAYE National Insurance or CIS deductions as a cash-flow management tool;
  • are slipshod with their due dates; and/or
  • have irregular salary payment...

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