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Late Payment of PAYE

Entitled to pay quarterly

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If an employer is entitled to pay quarterly (because the payments are small),  but decides, for whatever reason, to pay monthly, would I be correct in inferring that the maximum number of late payments in a year is four, rather than twelve ?

Consequently, the maximum percentage charged as a penalty would be 1%, rather than 4%.

Replies (9)

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By clark.hall
11th May 2018 16:36

Hmmm. Interesting question. I don’t know answer but can add that I advise all my clients to pay quarterly but me or client have never let HMRC know of this intention (even though I know we should).

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Replying to clark.hall:
RLI
By lionofludesch
11th May 2018 17:20

Well, that's rather the point. Since RTI came in, you haven't had to tell them as they know how much you owe.

Or they would know if there weren't so many glitches in the system.

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By Marion Hayes
12th May 2018 14:46

Prior to RTI, any payment received between 5/4 and 18/7 triggered a monthly payment expectation. Due dates were changed and interest charged.
First payment received 19/7 or later created quarterly time limits.
I would assume that is still the case.

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Replying to Marion Hayes:
RLI
By lionofludesch
14th May 2018 08:09

18th July ?

So you couldn't pay even a day early without triggering monthly payments ?

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By chatman
14th May 2018 17:19

I would've thought that, if he is entitled to pay quarterly, the first two payments in any quarter are simply early payments.

Unless you mean he is entitled to be registered for quarterly payments but is actually registered for monthly. Is this what it is?

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Replying to chatman:
RLI
By lionofludesch
18th May 2018 17:25

"Registered"?

In what way ? Did that not go out of the window in 2012, when HMRC knew how much everyone owed ?

Subject to errors, obviously.

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Replying to lionofludesch:
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By chatman
18th May 2018 17:35

I thought you could still request to be a quarterly payer if you paid little enough tax and NI each month. By "registered" I just meant down in their records as being a quarterly payer, either automatically or by request.

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Replying to chatman:
RLI
By lionofludesch
18th May 2018 17:55

Ah well, as I said last week, that's rather the point.

I don't think you have to register any more. They just know you're eligible from your RTI.

So, if you voluntarily decide to pay monthly, can you pick up a penalty for being late ?

I would've thought not - but I can't find any definitive answer in the regs or, indeed, the less authoritative HMRC blurb.

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By SteveHa
20th May 2018 10:26

I'd be surprised if, what is effectively a voluntary payment on account was able to trigger a penalty, or escalation of a penalty.

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