CH152950 - Penalties for Failure to Pay on Time: Rules for specific taxes: Pay As You Earn (PAYE) and National Insurance Contributions (NIC): Penalties: annual payment obligations - example
Example of obligation to pay Class 1A National Insurance Contributions, initial and further penalties after year end
Ali Ltd is due to pay Class 1A NICs of £2,000 to us on 19 July 2012, but fails to do so. »Ê¹ÚÌåÓýapp company makes some payments at later dates, as shown in the table below.
»Ê¹ÚÌåÓýapp due date is 19 July 2012. »Ê¹ÚÌåÓýapp penalty date is 19 August 2012. »Ê¹ÚÌåÓýapp penalties are as follows.
| Ìý | Payment | Unpaid Class 1A | Penalty |
|---|---|---|---|
| Amount due at 19 July 2012 | £2,000 | Ìý | Ìý |
| Initial 5% penalty on £2,000 at 19 August 2012 | Ìý | £100 | Ìý |
| Payment 1 September 2012 | £500 | £1,500 | Ìý |
| 5 month further 5% penalty on £1,500 at 19 January 2013 | Ìý | £75 | Ìý |
| Payment 3 March 2013 | £500 | £1,000 | Ìý |
| 11 month further 5% penalty on £1,000 at 19 July 2013 | Ìý | £50 | Ìý |
| Total penalty | Ìý | £225 | Ìý |