HMRC have made it mandatory for employers with 250 or more employees to make PAYE payments electronically, however HMRC recommends that all employers pay this way.
HMRC now recommend that all of your PAYE payments be made electronically. Paying electronically is fast, secure and convenient; it is vital that you give HMRC an accurate reference number.
Monthly payments of PAYE and National Insurance made electronically must be cleared in HMRC’s bank account no later than the 22nd of the month following the end of the month or quarter to which it relates.
Should the 22nd fall on a weekend or bank holiday, you must ensure that your payment arrives before the last bank working day before the 22nd.
For organisations with less than 250 employees postal payments can be made. If you do make you payments by post, your cheque must reach HMRC no later than the 19th of the month following the end of the month or quarter to which it relates.
HMRC now charge penalties on late payments of PAYE and National Insurance.
No penalty will be charged if only one PAYE amount is late in a tax year as long as that payment is not over six months late.
How much you will be charged depends on how much is late and how many times your payments are late in a tax year.
No. of times late |
Penalty percentage |
| 1 | No penalty (as long as the less than 6 months overdue) |
| 2-4 | 1% |
| 5-7 | 2% |
| 8-10 | 3% |
| 11 or more | 4% |
The percentage charge will be applied to the total liability outstanding.
