Late PAYE Payments

A new penalty system now applies for late ‘in year’ payments of PAYE. The penalty is a percentage of the total amount which is overdue in the tax year, ignoring the very first late payment. The scale is:

Frequency	%
Only late once	Nil
2 – 4 times	1
5 – 7 times	2
8 – 10 times	3
11 or more times	4

           

If you are late so that the 1% rate applies, but then you are late several times again within the same tax year, then the penalty on the earlier arrears that are still not paid increases from the original 1% to 2,3 or 4%!

Electric Cars

Company cars are generally allocated to the employees who pay tax on the benefit from using them privately. Even so, the latest rule changes mean that employees running cars powered solely by electricity are taxed on that benefit at 0% for the next five years.

Clearly companies can no longer ignore the introduction of more attractive electric cars.