Employer's PAYE NI and CIS late payment penalties
Provisions are now in force, with effect from 6 April 2010, to charge a penalty where PAYE and NI tax is paid late. Also CIS payments. The liability to a penalty is based on a totting up procedure depending on the number of defaults during a tax year. A penalty will not be levied for the first default and will then rise as follows:
Penalty % of tax payable
Times late: Once nil
Twice 1%
Three times 1%
4 to 6 times 2%
7 to 9 times 3%
10 + times 4%
balances unpaid:
six months late +5%
twelve months late +a further 5%
See tax treatment See Penalties on this page index