Among the long list of financial responsibilities that you must handle as a business owner is ensuring PAYE are made on time. In October 2023, the electronic payment deadline for your PAYE tax bill falls on Sunday, 22 October. To meet this deadline, your cleared funds must be in HM Revenue & Custom’s (HMRC’s) account by 20 October 2023, unless you opt for a Faster Payment.

Understanding PAYE payment deadlines

Your PAYE payment deadline depends on your payment frequency:

• If you pay monthly, your deadline is the 22nd of the next tax month.
• If you pay quarterly, your deadline is the 22nd after the end of the quarter. For example, 22 July is the deadline for the 6 April to 5 July quarter.
• If you choose to pay by cheque through the post, it must reach HMRC by the 19th of the month to avoid late penalties.

Consequences of late payments

Late PAYE payments can result in both interest charges and penalties. Penalties can vary depending on the degree of lateness and the number of times you’ve been late in the past.

Multiple ways to pay

There are various ways to pay your PAYE bill. While you can no longer make payments at the Post Office, the easiest way to pay is online.

Online payment

To pay online, you’ll need your 13-character accounts office reference number as the payment reference. You can find this number in several places, such as your HMRC online account, the letter HMRC sent you when you registered as an employer, or in your payment booklet (if you have one).

For each early or late payment, add four extra numbers to the end of your 13-character reference number. If you choose this service, it will automatically calculate these numbers for you.

What you’re paying

Your PAYE bill may include various components, such as employee Income Tax deductions, Class 1 and 1B National Insurance, Class 1A National Insurance on termination awards and sporting testimonials, Student Loan repayments, Construction Industry Scheme (CIS) deductions, and your Apprenticeship Levy payments if your business or connected employers have an annual pay bill exceeding £3 million.

Class 1A National Insurance on work benefits given to employees and PAYE Settlement Agreements are paid separately.

Stay informed and compliant

Timely PAYE payments will ensure you remain compliant with HMRC regulations. Staying informed and organised is key to ensuring you meet your payment deadlines and avoid penalties.

For more detailed information, you can visit official Government resources, such as GOV.UK’s PAYE tax page and Running Payroll and Paying HMRC.

If you have concerns or need professional assistance in managing your PAYE tax payments or any other financial matters, please don’t hesitate to reach out to us.