Essential information for business owners on meeting PAYE deadlines

As a business owner, one of your key financial duties is to make sure that PAYE payments are submitted punctually. For October 2023, the cut-off date for electronic PAYE tax payments is Sunday, 22 October.

To make sure you hit this deadline, your funds should be cleared in the HM Revenue & Customs (HMRC) account by 20 October 2023, unless you use Faster Payment.

Understanding the timings for PAYE payments

The deadline for your PAYE payment varies based on how often you pay.

For monthly payments, the deadline is the 22nd of the following tax month.

For quarterly payments, the deadline is the 22nd after the quarter ends. For instance, the deadline for the quarter from 6 April to 5 July is 22 July.

If you opt to pay by cheque via mail, it should arrive at HMRC by the 19th of the month to evade late fees.

Implications of delayed payments

Failing to make PAYE payments on time can lead to both interest charges and penalties. The severity of the penalties depends on how late the payment is and your past record of late payments.

Various payment methods

There are multiple avenues for settling your PAYE bill. Although Post Office payments are no longer an option, online payment is the most straightforward method.

Making payments online

To pay online, you’ll need your 13-character accounts office reference number. This number can be found in multiple locations, such as your HMRC online account, your employer registration letter from HMRC, or your payment booklet if you have one.

If you make an early or late payment, you’ll need to append four additional numbers to your 13-character reference number. This service will automatically generate these numbers for you.

Components of your PAYE bill

Your PAYE bill might comprise various elements, including employee Income Tax deductions, Class 1 and 1B National Insurance, Class 1A National Insurance on termination awards and sporting testimonials, Student Loan repayments, Construction Industry Scheme (CIS) deductions, and Apprenticeship Levy payments if your business or connected employers have an annual pay bill over £3 million.

Payments for Class 1A National Insurance on employee benefits and PAYE Settlement Agreements are processed separately.

Staying updated and compliant

Making your PAYE payments on time is crucial for compliance with HMRC rules. Being well-informed and organised is essential to meeting your payment deadlines and avoiding fines.

For more comprehensive guidance, you can consult official government websites like GOV.UK’s PAYE tax page and Running Payroll and Paying HMRC.

If you have any queries or require expert help in managing your PAYE tax payments or other financial issues, please contact us.