From tax year 2010-11 HMRC intends to implement the new late payments penalties for PAYE payments, including Income Tax/NICs, CIS and Student Loan deductions. This means that from May 2010 you may have to pay a late payment penalty if you do not pay the PAYE due each month or quarter, on time and in full. There will also be late payments penalties for not paying amounts due annually – including Class 1A NICs and PSA amounts – on time and in full.
The new late payment penalties will apply to all employers, not just large ones. They will replace the Mandatory Electronic Payment surcharge, which currently applies only to large employers.