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 Revenue & Customs 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, of course, cannot 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.
Companies with a year ending on 31st January 2017 will be due to make payment on or before 1st November 2017. 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 Revenue & Customs for this purpose).
As we have previously reported, the H M Revenue & Customs 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.
We would reiterate H M Revenue & Customs continue to take a hard line approach such that reaching arrangements continues with difficulty. Requests are made by H M Revenue & Customs 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. Responding to the questions raised will require detailed up to date knowledge of the state of the business. Commercial considerations and current requirements can be cited in these circumstances as the reason the company is requesting a time to pay arrangement and increasingly H M Revenue & Customs wish to discuss the payment arrangements with taxpayers thus removing us as agents from the negotiation. If you are experiencing difficulties in making payment and wish to explore the various options available to you please contact Steve Sharp to discuss.Last modified on