Business News

Penalties for late tax payments

Stratford-based firm of accountants, Murphy Salisbury, is advising tax payers that the 2010/11 tax year sees the introduction of a series of new penalties for late payment of income tax, National Insurance contributions, Construction Industry Scheme deductions and student loan payments.

The new rules will apply to all employers and contractors who make payments under the PAYE system. Penalties will be worked out as a proportion of the amount that is late, and will increase if payments are regularly behind schedule.

Paul Salisbury from Murphy Salisbury said “A penalty will not be charged for the first late payment of the year (unless it is over six months late) or if there is a ‘reasonable excuse’ for the delay.

“HM Revenue and Customs (HMRC) will also continue to charge interest on late payments, starting from the end of the tax year concerned. It has also announced proposals for charging interest on late payments within the same tax year, but this will not happen until at least the 2012/13 tax year”

To find out more about how working with our leading firm of accountants in Stratford-upon-Avon and Warwickshire can help you, please contact us.