PAYE penalties

The guidance lists the PAYE payments that are subject to penalties when not paid in full and on time.

 

These include monthly, quarterly or annual PAYE; student loan deductions; and Construction Industry Scheme (CIS) deductions.

 

It also provides a table showing the penalty percentage to be applied to late payments depending on the number of defaults in a tax year.

 

The first failure to pay on time does not count as a default although on subsequent late payments daily interest will continue to accrue on all unpaid amounts from the due and payable date to the date of payment.