Meeting PAYE deadlines – a guide for business owners01/11/2023
As a business owner, you will have a long list of responsibilities – many of which are financial in nature. One of those is making sure that you meet PAYE deadlines. It is vital that you meet these deadlines, because failing to do so could cause you an issue with HMRC, and cause you to incur penalties. We will tell you everything you need to know to ensure that you do not fall into this trap below.
What are PAYE payments?
When you make a PAYE payment, you are paying for the various components that, as an employer, you are obligated to pay for your employees. These include Income Tax deductions, Class 1 and 1B National Insurance, Class 1A National Insurance on termination awards, Construction Industry Scheme (CIS) deductions, Student Loan repayments, and Apprenticeship Levy payments if your business has an annual pay bill over £3 million. However, Class 1A National Insurance on work benefits given to employees and PAYE Settlement Agreements are paid separately.
What are the PAYE deadlines?
The specific date of your PAYE payment deadlines depends on how regularly you pay your staff. If you pay them monthly, then the deadline is the 22nd of the next tax month. If you pay them quarterly, it is the next 22nd (so if the quarter ends 31st March, then your PAYE payment deadline is 22nd April). Failing to meet these deadlines can result in interest charges and penalties, the severity of which are based on how late you make payment and the number of times you have been late previously.
How to pay PAYE
It is no longer possible to make PAYE payments at the post office, but you can still post a cheque in. Just be aware, if you choose to this, that your cheques must reach HMRC by the 19th of the month if you want to avoid late payment penalties. Overall, it is both safer and easier to make your payments online.
To make an online PAYE payment you will need your 13-character accounts office reference number which you should use as the payment reference. This should be easy to obtain from your HMRC online account, your payment booklet, or the registration letter you received from HMRC when you set up as an employer.
If you make a payment late, then the online service will calculate an additional four-digit number to add to the end of your 13-character reference number. Without this number, you will not be able to proceed.
If you need assistance making sure you meet your PAYE payments deadline, call JW Hinks on 0121 456 0190. Our friendly and professional team can help to ensure you remain compliant with HMRC.