For the first three defaults any employer clocks up in a tax year, a penalty of 1% of the tax paid late is charged. There is then a sliding scale up to a 4% penalty for 10 or more defaults in a year. If tax is not paid within six months of the due date a further 5% penalty is charged, with another 5% added if it is still outstanding after a year.
If you have used HMRC’s Business Payment Support service to agree a deferred payment plan, these penalties are not charged.
Further in formation can also be obtained from the HMRC web site. |