How to avoid late PAYE and Construction Industry Scheme payment interest
HMRC now charges interest on any late PAYE and Construction Industry Scheme (CIS) payments.
Employers that pay monthly will be aware that their first payment for the 2014-15 tax year was due on 19 May (22 May for those paying electronically).
To avoid an interest charge employers should pay by the due date, the difference between the following:
what they report on their Full Payment Submission(s) received by 19th of the month following the end of the tax month it relates to, together with any CIS charges for that tax month
any deductions reported on an Employer Payment Submission, again received by the 19th of the month following the end of the tax month it relates to
If employers make any corrections on an FPS that HMRC receives after 19th of the month following the end of the tax month it relates to, the correction will be included in the following month's charge. In these circumstances the amount payable for the tax month is the amount actually reported by the 19th (rather than the corrected amount).
If you have any questions about late PAYE and Construction Industry Scheme payment interest please do not hesitate to contact us.