In the UK’s Pay as You Earn (PAYE) system, it is the obligation of the taxpayer to ensure that any payments to HMRC are made on schedule. HMRC won’t send notifications or letters when a payment is due, so ensure you keep on top of the deadlines. For monthly PAYE payments, your bill should be paid before the 22nd of the following month and if you do quarterly payments, your PAYE bill is due every 22nd at the end of the quarter. 

Information to include in your PAYE bill

Here is the list of reports that you must include while paying your bills to HMRC: 

  • Income Tax deductions of employees 
  • National Insurance of Class 1 and 1B 
  • Repayments of Student Loan 
  • Class 1A National Insurance on termination awards and sporting testimonials
  • Deductions made on Construction Industry Scheme (CIS) 
  • Your Apprenticeship Levy payments (beginning from April 2017) when you, or managers you’re associated with, have a yearly pay bill of £3 million and more. 

You can take the amount of PAYE tax you’ve paid on your payslip. You can see it adjacent to your student loan repayments and National Insurance contributions. 

Different Methods to pay your PAYE Bill

As per HMRC, you can pay your due PAYE bill with different modes of payment as listed below:

Paying on same or next day

  1. Online or telephone banking (for Faster payments)
  2. CHAPS 
  3. With your bank account 

Paying in 3 to 5 working days

  1. Through debit card or company’s credit card
  2. Through Cash or Cheque
  3. If you have set up, then through direct debit.
  4. You can send the cheque through direct mail. 

HMRC will impose interest on all missed PAYE taxes (Class 1 national insurance contributions (NICs) and student loan deductions). HMRC can impose a fine in the case when Employers don’t pay what they owe in full. 

Late payment charges were used to apply at the end of the tax year, in the past. However, nowadays, interest on late PAYE payments is charged at a daily rate of 2.75% on the unpaid amount.

Accurately handling Payroll Processing 

Running payroll precisely is important. Other than HMRC’s Basic PAYE Tools program; you can use payroll software to manage business’ payroll necessities. 

In any case, it is critical to see how the PAYE system functions, and to not depend too intensely on technology. On this matter, please have a conversation with Zyla Accountants before settling on any choices. 

How can Zyla Accountants help? 

Zyla Accountants can deal with your regularly scheduled payroll or guide you to manage it yourself. It truly is simple. We can advise you on setting up a pension under auto-enrolment and your monthly filing commitments.

We use Brightpay Software to handle the payroll processing of our clients. BrightPay is an HMRC approved, cloud-based payroll software that can handle all RTI submission types. It includes full auto-enrolment functionality. 

Let’s explore how we can assist you! 

Contact us at: 

Call: 0208 089 5177

Mail: [email protected]

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