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HMRC Unnecessary Demands and Threats to Collect PAYE Liabilities

HMRC Unnecessary Demands and Threats to Collect Payment

Nobody likes to receive letters from HMRC demanding money – particularly when none is due!

 However that is exactly what can happen if you do not notify HMRC that there is no PAYE liability for a period.

HMRC PAYE Payments (Income Tax and National Insurance)

It is important that that PAYE is paid on the due date, however if you do not owe any money it is very important to send an online notification to HMRC for each payment period when there is no amount due to HMRC.  You do this at www.hmrc.gov.uk/payinghmrc/paye-nil.htm using your 13 character HMRC Accounts Office Collection Reference (you can find this at the top of your payroll schedule provided by Primus Accountancy), if you do not have the reference, contact us and we will be able to supply this or obtain it for you.

NIL Payments

Your periodic PAYE Payments (Income Tax and National Insurance) are shown on the right hand column of the Payroll Schedule provided by Primus Accountancy.  If this is reported as zero then no payment is due.  If you require a further copy of your Payroll Schedule then please contact us.

HMRC Debt Management Letter

Should you receive a letter from HMRC advising that PAYE/NIC/Subcontractor payment is overdue you will notice that they do not include their telephone number because HMRC ‘are simply expecting you to pay or tell us that you do not owe any tax’.  In accordance with their request, if there is no PAYE due then to declare that there is nothing to pay follow the same link as above www.hmrc.gov.uk/payinghmrc/paye-nil.htm and enter your Accounts Office Collection Reference and the period to which the declaration relates.

PAYE Payments

If there is a PAYE payment due, then it is important that payments are made to HMRC by the due dates.

PAYE / NIC Payments

Your periodic PAYE Payments (Income Tax and National Insurance) are shown on the right hand column of the Payroll Schedule provided by Primus Accountancy.  You can also view this within the payroll section of your portal in Primus Online Accounting at www.primusaccountancy.co.uk/cashbook/ .  If you require a further copy of your Payroll Schedule then please contact us.

Electronic payments (BAC’s, Internet, Telephone Banking or CHAP’s Transfers) are due with HMRC on the 22nd of the month following the quarter or month end date, or by the 19th if paid by cheque.

Quarterly Payments

If the average total monthly amount of income tax and NIC is less than £1,500 then an employer can pay their PAYE quarterly.  Quarterly payments are due by 22nd (19th if paid by cheque) day of July, October, January and April.  If you are making quarterly payments, for the first two months of each quarter there is no payment due and you need to declare to HMRC that there is nothing to pay for that month, follow the link www.hmrc.gov.uk/payinghmrc/paye-nil.htm and enter your Accounts Office Collection Reference and the period to which the ‘Nil Payment Due’ declaration relates.

Monthly Payments

These must be paid by 22nd day following the end of the pay month (19th day if paid by cheque).

Electronic Payments

 Payment can be made by BAC’s, Internet, Telephone Banking or CHAP’s Transfers.  You can also pay online by debit card at www.billpayment.co.uk/hmrc.

The bank details for HMRC depend on whether your taxes are collected by the Cumbernauld or Bradford Accounts Office.

HMRC Cumbernauld                      

Sort Code – 08-32-10                                                                                                                                                                                     

Account Number – 12001039                                    

HMRC Shipley

Sort Code – 08-32-10

Account Number – 12001020

Whenever making a payment it is important to include the specific reference, the Accounts Office Reference can be found at the top of your payroll schedule provided by Primus Accountancy, if you do not have the reference, we will be able to supply this or obtain it for you.

Should you have any questions then please do not hesitate to contact us.

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