New electronic ‘nudge’ on PAYE

A new electronic reminder designed to help employers stay up-to-date with their Pay As You Earn (PAYE) payments has been introduced by HM Revenue & Customs (HMRC).

HMRC said the message would tell the employer that they appeared not to have made full payment of their PAYE on time and remind them that they must do so in future.

The message follows the introduction of other electronic reminders regarding PAYE late and non-filing.

All the messages are being phased in gradually, and will not necessarily be sent in every instance, so that HMRC can “monitor and review the message service to ensure it is as efficient and thorough as possible”.

HMRC said it would “continue to issue its usual communications to employers, where payment appears to be late, as a matter of course.”

Although there are no in-year penalties for late filing and/or payment for the 2013-14 tax year, employers will be liable to penalties after the end of the tax year:

  • if they do not report the final payments made to an employee or pension recipient by 19 May following the end of the tax year
  • for failure to pay on time.

Link: HMRC advice on staying up to date with PAYE