From 6 April 2010, a new system of penalties will be introduced for late paid employer PAYE and NIC. For the first late or missed payment (known as a default) there is no penalty. After that penalties are levied in 1% steps up to a 4% maximum depending on the number of defaults in the tax year. There is a separate 5% penalty for any default lasting over six months and another 5% for payments 12 months late.
On first default, larger employers will receive an automatically computer-generated warning letter.
Second and subsequent defaults – penalty notices to be issued, but only after HMRC have ascertained the facts, and only after April 2011. All penalty notices will be issued by an HMRC officer and approved by a senior person before issue.
How can Lynam Tax Investigation Experts help me?
Lynam Tax partners have a vast amount of practical experience in managing tax investigations and tax enquiries. We can advise you on the best course of action and if appropriate, help you manage any necessary disclosures, in order to obtain the optimum outcome for you, your business and your family.
*For a free, private, no obligation consultation, call Paul or Gemma Lynam today on 0845 643 9997