Once again HM Revenue and Customs (HMRC) has issued reminders to employers that all PAYE payments for their staff must be in on time. Late payments will make the employer liable for a financial penalty. This is bad news for businesses who are struggling to maintain productivity and sales in the current economic climate and who sometimes feel they have to give this 'core activity' higher priority than the 'back-office admin' of payroll processing services.
Electronic payments for PAYE must reach HMRC by the 22nd of each month. But if that date falls on a Saturday or Sunday, the payment must have cleared into HMRCs bank account by the Friday before. If it has not, the payment will be classed as late, and the employer will become liable for the penalty charge. With the government trying hard to cut waste and costs and to maximise revenue, it is unlikely that HMRC will adopt a patient and lenient approach with late payers, especially if lateness is persistent.
It is yet more pressure on businesses battling through the harsh economic conditions, and maybe having to cope with reduced staffing levels due to essential cost cutting. Deploying specialist staff, skilled in the appropriate software programmes, to administer the company payroll services correctly, can become a real managerial and financial problem.
That's why, increasingly, businesses are turning to payroll companies such as us at Dataplan Payroll. Our payroll services specialists can ensure all payments - wages and PAYE - are made accurately and on time.
