CH152175 - Penalties for Failure to Pay on Time: Rules for specific taxes: Pay As You Earn (PAYE) and National Insurance Contributions (NIC): Obligations: Overview

»Ê¹ÚÌåÓýappre are rules that require employers to deduct tax from payments to their employees and pay this tax to us by certain dates.

»Ê¹ÚÌåÓýappre are also obligations on employers to make payments by certain dates where we issue a determination or notice where the employer

  • has not sent in a return, or
  • has understated their liability.

A further payment obligation exists if we agree to a PAYE Settlement Agreement.

Note that a person is treated as having paid the full amount of tax on time if the difference between the amount paid by the due date and the tax due is £100 or less. This person would not be liable to a penalty for failing to pay on time.

FA09/SCH56