A couple of reminders for you.
PAYE & National Insurance
Employers PAYE & NI payments (including construction industry payments) for each tax month ending on the 5th are due for payment by 19th (by cleared cheque) or 22nd for electronic payments. Care should be taken when either of these two dates fall at a weekend in which case payment should be made on the last working day before the due date. H M R & C use the “Faster Payment” scheme for electronic payments which will mean payment can be made later than previously without penalty.
Late payment can result in a penalty. The issue with this is that the level of the penalty is geared to the number of late payments made in a tax year which cannot of course be determined until after the end of the tax year and can thus come as a surprise unless a track is kept of the number of late payments and the quantum of those payments.
Corporation Tax Liabilities
Companies with a year end 28th February 2014 and 31st March 2014 will be due to make payment on or before 1st December 2014 and 1st January 2015 respectively. Late payment will entail an interest charge. Payment can now only be made electronically (which does include payment via your own bank or the post office using the payslip issued by H M R & C for this purpose).
We have previously reported that the H M R & C business payment support helpline remains open for those who are unable to settle the full amount by the due date and wish to enter into an arrangement to settle the outstanding tax in instalments.
H M R & C continue to take a more hard line approach such that reaching arrangements is becoming more difficult. Frequently requests are made by H M R & C for cash flows and detailed explanations as to why funds were not put aside to settle tax liabilities particularly from their point of view, the profits in question had been earned some time prior to the due date for payment. Naturally commercial considerations can be cited in these circumstances. Increasingly H M R & C wish to discuss the payment arrangements with taxpayers. If you are experiencing difficulties in making payment and wish to explore the various options available to you please contact Steve Sharp to discuss.
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