We all know it is very important to pay your taxes to HMRC by their deadlines to avoid any late payment interest and penalties.
The statutory deadline for paying Employers PAYE liability is the 22nd of the month – or the 19th if paying by cheque through the post.
Different ways to pay your PAYE include:
- By Debit or credit card online
- At your bank or building society (cash or cheque)
- At the post office (debit card, cash or cheque)
- Direct Debit
- By Cheque through the post
HMRC’s preferred option is that you make your payments online as this saves them money and hence saves you, as the tax-payer, money as well.
For employers, the advantage of paying with online banking is that the deadline extends by 3 days to the 22nd. If your bank offers faster payments this means you can pay on a Saturday/Sunday if the 22nd falls on the weekend.
Whereas, if you pay by BACS you would have to put the payment through 3 working days before the deadline for it to clear and paying by direct debit would mean having to pay it 5 working days before the deadline.
If you pay by posted cheque, the recommended time of posting is around the 12th of the month – 10 working days before the payment is due!
You can see the different payment deadlines in the diagram below:
To increase your payment deadline, paying by faster payments, CHAPS or personal banking will be the best option. Paying by cheque gives you the shortest deadline as you have to give it time to arrive with HMRC and for the payment to clear.
If you have a debit or credit card you can give us a call and we can pay your liability over the phone for you.
Alternatively, if we provide you with our payroll services, we can set up the direct debit PAYE payment for you when the payroll is processed so you have no worries about paying it yourself or making sure it is paid on time. For more information on any of the above or to pay your liabilities by card or direct debit please contact us on 0116 2423400.
Zahra Bates, Payroll Assistant