Eric Mc - Help! Underpaid PAYE/NI
Discussion
I have discovered that for the last tax year up to 5.04.07 I have paid my staff about £11k and not deducted PAYE or NI from this money. It was a genuine error and have discovered and rectified why it has happened but obviously need to make the relevent payment to the revenue.
Apart from telephoning them first thing in the morning and explaining, am I likely to face any penalties or grief from them? What's the best way to go about this, and are they likely to give me some time to pay/spread the payments?
Any advice greatfully received. I know the HMC+E are not monsters, but I'm quietly cacking myself here. Visions of a spell in Exeter Gaol sharing the soap in the shower with Big Bubba from D wing!!
I know technically the monies should be deducted from my staff, but the mistake was mine and I'm prepared to pay it on their behalf because they are all hard working individuals on a hand to mouth existence.
Apart from telephoning them first thing in the morning and explaining, am I likely to face any penalties or grief from them? What's the best way to go about this, and are they likely to give me some time to pay/spread the payments?
Any advice greatfully received. I know the HMC+E are not monsters, but I'm quietly cacking myself here. Visions of a spell in Exeter Gaol sharing the soap in the shower with Big Bubba from D wing!!
I know technically the monies should be deducted from my staff, but the mistake was mine and I'm prepared to pay it on their behalf because they are all hard working individuals on a hand to mouth existence.
Contacting them and telling them straight away is the correct course of action.
As this is going to relate to PAYE for the year 2006/07, all the PAYE for that year should have been paid in full by 19 April 2007, so there will definitely be interest charged. However, by being up front and honest about it penalties should be mitigated ormaybe even cancelled altogether.
They may want to review the way you are handling your PAYE as it sound like you made some fundamental errors. Expect a PAYE visit as a result.
As ever, I have to ask, have you been getting any profesional help in your PAYE and tax affairs?
As this is going to relate to PAYE for the year 2006/07, all the PAYE for that year should have been paid in full by 19 April 2007, so there will definitely be interest charged. However, by being up front and honest about it penalties should be mitigated ormaybe even cancelled altogether.
They may want to review the way you are handling your PAYE as it sound like you made some fundamental errors. Expect a PAYE visit as a result.
As ever, I have to ask, have you been getting any profesional help in your PAYE and tax affairs?
Thanks Eric. It was a complete cock up from the way the drivers were paid from when I took the company over. It is now sorted out as I am using a much simpler method of calculating their wages. I know where we went wrong and it was such a fundamental error I should be slapped!
I know it won't and can't happen again. The accountant we are using we 'inherited' with the company and they suggested using paper P11's and tax calculation tables, etc ,etc. We have now loaded the revenue's disc and use that, which save ages and ages as is so simple it isn't true. So this year will be fine.
I know it won't and can't happen again. The accountant we are using we 'inherited' with the company and they suggested using paper P11's and tax calculation tables, etc ,etc. We have now loaded the revenue's disc and use that, which save ages and ages as is so simple it isn't true. So this year will be fine.
He's not paying any individuals' tax liabilities for them. He is correcting errors in his PAYE and NI calculations. The employee's Net take home pay remains the same.
The primary responsibility for calculating and paying over an employee's tax and NI liabilities rests with the employer.
The primary responsibility for calculating and paying over an employee's tax and NI liabilities rests with the employer.
Eric, thanks for your advice. The Revenue were wholly unimpressed by the whole thing and simply told me to make the payment asap and show the calculations on the P35 that I have yet to file.
"As long as the figures balance, we don't really care when you pay the employees or how"
Big Bubba is going to have to wait!!
"As long as the figures balance, we don't really care when you pay the employees or how"
Big Bubba is going to have to wait!!
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