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%!