When must monthly PAYE be paid by cheque to HMRC?

When must monthly PAYE be paid by cheque to HMRC?

• A. Within 21 days of the end of the tax month
• B. Within 14 days of the end of the tax month
• C. Within 10 days of the end of the tax month
• D. Within 30 days of the end of the tax month

Answer: (B)

The requirement to pay monthly PAYE by cheque to HMRC states that payments must be made within 14 days of the end of the tax month. This is crucial for businesses to comply with tax regulations and avoid penalties. HMRC stipulates these deadlines to ensure that the payment process is consistent and allows for the timely processing of tax contributions. The specific timeframe of 14 days ensures that employers can calculate and submit their PAYE liabilities based on the monthly payroll data, which includes deductions for income tax and National Insurance contributions. Adhering to this timeline helps maintain the proper functioning of the payroll system and supports HMRC’s ability to manage tax income effectively. Therefore, understanding the requirement to make these payments on time helps businesses avoid interest charges or other penalties from HMRC for late payments.

The requirement to pay monthly PAYE by cheque to HMRC states that payments must be made within 14 days of the end of the tax month. This is crucial for businesses to comply with tax regulations and avoid penalties. HMRC stipulates these deadlines to ensure that the payment process is consistent and allows for the timely processing of tax contributions.

The specific timeframe of 14 days ensures that employers can calculate and submit their PAYE liabilities based on the monthly payroll data, which includes deductions for income tax and National Insurance contributions. Adhering to this timeline helps maintain the proper functioning of the payroll system and supports HMRC’s ability to manage tax income effectively.

Therefore, understanding the requirement to make these payments on time helps businesses avoid interest charges or other penalties from HMRC for late payments.