HMRC Are Now Charging Interest on Late PAYE

As of 20th May HMRC are charging interest on late payments of PAYE.

Penalties for late submission of RTI returns have been postponed until October so that’s some good news.

However, I have a few clients who are still paying PAYE by cheque and very often don’t send it until the actual deadline date of the 19th. These clients will now be charged interest and, as I firmly believe that small businesses are paying enough over to HMRC, I think that everyone should be avoiding the possibility of interest payments.

The easiest way to do this is to set up a direct debit for your PAYE. Not only does this mean you will avoid interest charges without even thinking about it, you will also get an extended deadline of the 22nd of each month. It’s not much but I say take whatever concessions you can get!

I am also absolutely positive that there will be many businesses who are accidentally charged interest due to the relative newness of the RTI system. There are still quite a few bugs to iron out with HMRC’s figures often not matching the employers.

If you do get an interest charge notice which you believe to be in error then appeal it. The interest may not be much and you might think that it isn’t worth your time appealing against a few pence but if people don’t notify HMRC every time they get it wrong then we can’t expect them to rectify errors they are unaware of.

Make sure that you are registered for PAYE online on HMRCs website in order to set up a direct debit.

If you need any help then please feel free to ask me.

Vikki

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