At Payroll Compliance between the 10th – 15th of the month we send our clients a PAYE and Ni Liabilities reminder with their P30 employers payslip attached, to nudge them to pay HMRC if they haven’t already done so.
HMRC want cleared funds in their bank account by 22nd of the month otherwise you’re company will start accruing interest. This is why we advise all our clients to pay HMRC on or before 19th of the month. Please be aware of bank holidays effecting the payment dates.
As you may be aware, HM Revenue and Customs (HMRC) has recently added direct debit payment capabilities for PAYE liabilities. Which is a positive move forward, however it hasn’t come without any hiccups.
Once set up, the direct debit will not retrieve funds until after the 22nd of the month. This is because the advance notification is not issued until the 20th, or the next available working day. Collection will then happen three working days after the notification has been issued.
As this date will always be after the deadline of the 22nd, late payment interest will begin to show on your business tax account. But don’t worry, this will be removed once funds have cleared into HMRC’s account.
If you are an SME or Accountant and are interested in outsourcing your payroll to payroll professionals then please email rachel@payroll-compliance.co.uk or call 01275 858001.