CH152175 - Penalties for Failure to Pay on Time: Rules for specific taxes: Pay As You Earn (PAYE) and National Insurance Contributions (NIC): Obligations: Overview

There are rules that require employers to deduct tax from payments to their employees and pay this tax to us by certain dates.

There are also obligations on employers to make payments by certain dates where we issue a determination or notice where the employer

• has not sent in a return, or
• has understated their liability.

A further payment obligation exists if we agree to a PAYE Settlement Agreement.

Note that a person is treated as having paid the full amount of tax on time if the difference between the amount paid by the due date and the tax due is £100 or less. This person would not be liable to a penalty for failing to pay on time.

FA09/SCH56