Employer and Contractor Compliance – New penalty regime for late payments

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A draft statutory Order has been published in order to bring into force, from 6 April 2010, the new penalty regime for employers who fail to make their monthly or quarterly payments to their Accounts Office on time and in full.  The Order was published for comment so the date is subject to final confirmation.

The Order confirms that the penalty regime applies to payments of

• PAYE income tax due in respect of tax periods starting on or after 6 April 2010, and
• income tax due in respect of charges arising under registered pension schemes, starting with any tax reported on the quarterly return due on 30 September 2010

A similar Order will be made relating to payments of NICs.

As the new penalty regime applies to all employers, irrespective of size, the existing surcharges that are applied when “large” employers, i.e. those with 250 employees or more, fail to make cleared payments by the 22nd of each month, are removed from the start of the 2010/11 tax year unless they arise in respect of tax periods ending on or before 5 April 2010.  Although the late payment surcharges are abolished, the requirement for large employers to make their payments electronically remains in force.

More information about the new penalty regime is contained in this week’s Employer FAQ.

Further information:

Penalties for late payment of employer and contractor PAYE

This entry was posted on Friday, January 15th, 2010 at 10:07 and is filed under Compliance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.