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HMRC have published guidance on changes to how interest will be charged on employers" late payments for PAYE and the Construction Industry Scheme (CIS) charges for 2014–2015 say Harris & Co accountants Northampton #accountantsinnorthampton

From tax year 2014–2015 onwards, HMRC will charge in-year interest, rather than annual interest, on all unpaid PAYE tax, Class 1 National Insurance, and Student Loan deductions including specified charges; CIS charges; in-year late filing penalties (from October 2014); and in-year late payment penalties (charged automatically from April 2015).

The guidance explains how employers can avoid an interest charge; what happens if employers need to correct a full payment submission during the tax year; how interest will be calculated and how this will be communicated to employers. It confirms that HMRC will pay interest on overpayments in-year. The guidance also covers right of appeal and payment difficulties.