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HMRC are now issuing penalties for any late payments of PAYE & CIS made during the 2010/11 tax year. By now you may have forgotten that you incurred penalties in that tax year!
Under this new penalty regime, if you are late with one payment, a letter is issued warning that any subsequent late payments will lead to penalties.
If a subsequent payment is late then a penalty will be charged at 1%. If late payment continues then the maximum penalty chargeable will be 4% of the total amount paid late in the tax year. However the actual penalty does not arrive until sometime after the tax year end and so can be a nasty shock.
Remember to check all penalties carefully. You you can appeal if you think that it has been incorrectly charged.
For further information or to discuss, please contact Lesley Sutton on 01484 550037 or taxchat@revellward.co.uk
