Take Care with Electronic PAYE Payment Dates

Last month we reported that HMRC were reminding employers to ensure that PAYE payments made electronically have been cleared into HMRC’s bank account by the due date.

According to HMRC many employers have taken advantage of the electronic payment option which generally gives a later payment date of 22nd of the month. However HMRC are stressing that where the 22nd falls on a non banking day (a weekend or Bank Holiday) the payment may need to be made earlier to ensure that HMRC has cleared funds by the due date. HMRC need to have received cleared funds by the last bank working day before the 22nd. We reported in last month’s enews that according to the HMRC employer diary the next time the 22nd was due to fall on a non banking day was May 2011, and that cleared funds must reach HMRC’s bank account by Friday 20th May 2011. It appears that HMRC have forgotten about Easter Good Friday which falls this year on Friday 22nd April 2011. As this is the last payment date for 2010/11 PAYE it is important that the cleared payment is received into HMRC’s bank account by Thursday 21st April 2011. HMRC may issue penalties to any employer who makes late payments of PAYE more than once for 2010/11. These penalty notices will not be issued until after the end of the tax year.