The following Employment Tax guidance note Produced by Tolley in association with Philip Rutherford provides comprehensive and up to date tax information covering:
The late payment of income tax and national insurance contributions (NIC) via PAYE, student loan deductions and income tax due under the construction industry scheme attracts both interest and penalties.
These penalties are a relatively recent addition to the rules. Before 2009/2010 there were no penalties for late PAYE payments for the majority of employers as long as the amount due for the tax year was paid by 19 April (22 April if the payment was made electronically) after the end of the tax year. FA 2013, Sch 50 amended the PAYE penalties regime to cater for the introduction of Real Time information (RTI) but penalties for late payment under RTI were phased in (see the announcement on the GOV.UK website).
The late payment penalties apply to all employers and contractors regardless of size. The regime covers all payments made throughout the year, whether on a monthly or quarterly basis, and includes all payments in respect of:
income tax payments via PAYE
student loan deductions
payments under the construction industry scheme (CIS)
Class 1 NIC via PAYE
FA 2009, Sch 56, para 5
Since October 2013 employers are required to file PAYE returns in real time. The Real Time Information (RTI) requirements govern how and when filings have to be made. For further information on RTI please refer to the Real time information guidance note. While RTI governs the nature of the submission to HMRC, it has not changed the due dates for filings, and paying tax and NIC to HMRC. There are separate penalties for failure to comply with the RTI requirements. Historically HMRC had difficulty in identifying late payments readily. The introduction of RTI gives HMRC easy access to see what payments have been made late.
Penalties in relation to late payment of Class 1A and Class 1B NIC are discussed at the end of this guidance note.
The penalty is calculated based on three factors:
the amount not paid by the due date (ie
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
Summary of capital allowances on carsThe current capital allowance rates applicable to cars are as follows:Pool typeDescription of carRateLegislationMain rate poolNew and unused cars with CO2 emissions over 50g/km but not more than 110g/km (to be reduced to 50g/km and below from April 2021)18%CAA
Normal due dateSmall companies (including marginal relief companies) are required to pay all of their corporation tax ― nine months and one day ― after the end of the chargeable accounting period.For example, where a chargeable accounting period ends on 31 December 2018, the due and payable date for
This guidance note considers the capital gains tax implications where shares are sold in exchange for new shares.The consideration paid by a purchasing company to the shareholder(s) for their shares in a target company could be in the form of either:•new shares in the vendor in exchange for shares
Business asset disposal relief (previously known as entrepreneurs’ relief) is a capital gains tax (CGT) relief that allows business owners with chargeable gains on qualifying business assets to pay CGT at a rate of 10%. For disposals made on or after 11 March 2020, the relief is available on up to
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.