Penalties for the late payment of PAYE/CIS

Penalties will be one of the big issues in tax for construction businesses in 2010 until the new system beds down. Under the old system (before 1 January 2010) if a monthly payment of PAYE was late there was no penalty. All businesses knew that PAYE had to be paid by the 19th of the following month but many firms paid late or paid something – but not enough. This could happen for many reasons; because they sent cheques and the post was delayed, because poor cash flow meant that they had to pay ‘a bit late