Rumours are circulating that the Inland Revenue is about to issue penalties regarding PAYE payments on unsuspecting businesses.

PAYE Return Forms (P35)

The PAYE Return Forms for 2010/11 were due for submission by 19^th May 2011, which means the Taxman should be processing them by now.  This year this might well prompt a review of payment dates.

Penalties

Any late PAYE tax and NI payments due for 2010/11 will be liable for a penalty.  If one late payment is made, there is no penalty.  If you make two late payments, then you could incur a penalty equal to 1% of the amount overdue.  This fine increases on a sliding scale until, where payments are late eleven times in a tax year, it is 4%.

Points to remember

If you have made one or two late payments, make a note of each payment, so they are easily available for future reference.  This could save you a great deal of time and effort and avoid a dispute with the Inland Revenue.  Another important point to remember is do not volunteer this information, only offer it if you are being threatened with a penalty first.

Should you have any tax issues, or need help completing your tax return, contact CJS Accounting.