It’s that time of the year again when you must pay your PAYE bill to HMRC.
If you pay monthly be sure to pay your bill by the 22nd of the next tax month, and if you pay quarterly to pay by the 22nd after the end of the quarter (ie on the 22nd of July for salaries paid April to June 2021).
What are you paying?
Your PAYE bill may be made up of the following:
- Income Tax deductions
- Class 1 and 1B National Insurance
- Student Loan repayments and Construction Industry Scheme (CIS) deductions
As you are paying these from your company, if you exceed the National Insurance (NI) threshold, you will also need to pay the Employers NI as well. If your company has multiple employees above the NI threshold, it is likely you will be entitled to claim the Employment Allowance, which means your company will be able to reduce its liability by up to £4,000 per year.
How can you pay?
If you don’t pay by the deadline you may incur extra costs in the form of interest and penalties. You can pay in the following ways:
Same or next day – online or telephone banking, CHAPS, or through your online bank account
3 working days – by debit or corporation credit card online, BACs, at your bank or building society (cash or cheque), by direct debit if you’ve already set one up, or by cheque through the post
5 working days – by direct debit if you have not set one up before
Beware! If the payment deadline falls on either a weekend or bank holiday, payment must reach HMRC by the last working day. Payments can also no longer be made at the Post Office.
If you’re paying at your bank, building society or by post
You’ll need to get a payment booklet from HMRC. If you do not have one, you can request HMRC to send you one.
How can Aardvark Accounting help?
Here at Aardvark we’re ready to offer advice and support on any subjects that affect contractors, including helping you in paying HMRC what they’re owed. If you’re a client be sure to speak directly to your personal accountant, and if you’re considering becoming an Aardvark client simply take a look at our packages or get it touch.