HMRC have issued the first batch of penalty notices to organisations for missed PAYE and NIC payments. The actual penalties will be calculated and issued after the end of the tax year.

To avoid these penalties organisations need to make sure they pay their PAYE and NIC on time, or only miss one payment. If you miss one payment it must be less than six months late – otherwise you still get a penalty.

In a time of reduced income levels for most organisations, care needs to be taken that money isn’t wasted on unforeseen penalties. The penalty is based on a percentage of the PAYE and NIC due, and starts at 1% and increases each time another payment is late.