As a business owner, managing your financial responsibilities is crucial to the success and compliance of your business. A critical obligation you must uphold is meeting PAYE deadlines to ensure that PAYE (Pay As You Earn) payments are made on time.
PAYE is a system where employers withhold income tax and National Insurance contributions from employees’ wages and promptly pay them to HMRC.
What happens if you miss a PAYE deadline?
Failing to meet PAYE deadlines can result in interest charges and penalties. The penalties vary depending on the degree of lateness and the number of times you’ve been late in the past. Therefore, it is important to maintain compliance with HMRC regulations, understand the consequences, and take necessary steps to avoid them.
What are the key PAYE deadlines to keep in mind?
Depending on your payment frequency, the PAYE payment deadlines vary.
- Monthly payments are due by the 22nd of the next tax month.
- Quarterly payments are due by the 22nd after the end of the quarter.
- If you are paying by cheque through the post, it must reach HMRC by the 19th of the month.
How do I make a payment?
While payments at the Post Office are no longer accepted, the easiest way to pay your PAYE bill is online. You will need your 13-character accounts office reference number as the payment reference. You can find this number in several places, such as your HMRC online account, the letter HMRC sent you when you registered as an employer, or in your payment booklet.
What the PAYE bill consists of?
Your PAYE bill may include various components, such as:
- Employee Income Tax deductions
- Class 1 and 1B National Insurance
- Class 1A National Insurance on termination awards and sporting testimonials
- Student Loan repayments
- Construction Industry Scheme (CIS) deductions
- Apprenticeship Levy payments (if applicable)
How can BK Plus assist you with PAYE Deadlines?
At BK Plus, we understand the complexities of managing PAYE payments and the importance of meeting deadlines. Our team of expert accountants is here to assist you in navigating these obligations, ensuring that your business remains compliant and avoids any unnecessary penalties. Contact us today for professional assistance in managing your PAYE tax payments and other financial matters.