CH152600 - Penalties for Failure to Pay on Time: Rules for specific taxes: Pay As You Earn (PAYE) and National Insurance Contributions (NIC): Penalties: monthly and quarterly tax periods - further penalties

If any amount of tax remains unpaid 6 months after the penalty date the person is liable to a further penalty of 5% of the tax that remains unpaid 6 months after the penalty date.

If any amount of tax remains unpaid 12 months after the penalty date the person liable to a further penalty of

• 5% of the tax that remains unpaid 12 months after the penalty date.

The penalty date is the day after the due date.

Unlike the default penalty, the further penalties do apply to the first failure in a tax year.

Note that you have a further penalty even if there is no default penalty. This would occur where the first failure remains unpaid for 6 months.

See the examples at CH152700.

FA09/SCH56/PARA7

FA09/SCH56/PARA8