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HMRC internal manual

Compliance Handbook

Penalties for Failure to Pay on Time: Rules for specific taxes: Pay As You Earn (PAYE) and National Insurance Contributions (NIC): Obligations: Amounts of PAYE payable under an assessment or determination in the absence of a return

Where we issue a Regulation 80 determination and/or a Section 8 Notice when the employer has not sent in a return, item 17 of the table in Schedule 56 provides that the penalty date is 31 days after the date by which the amount would have been required to be paid if it had been shown on a return.

The employer is liable to an initial penalty of 5% of the amount unpaid at the penalty date.

The employer may also be liable to two further penalties of 5% of any amount unpaid 5 months or 11 months after the penalty date.