Back in the day, it was the VAT man you didn’t want to mess with. They were heavy fines for non-compliance or not paying the VAT bills.
The PAYE/NI department was the nicer younger brother of the VAT department. The fines were less and they were less proactive in chasing money owed.
This is changing…..
The VAT man is still as aggressive as ever, the fines are still high but it is the PAYE/NI department that is following the lead. There’s a few key points:
1. I’ve now heard of the PAYE/NI man turning up at people’s houses (something that would hardly ever happen before)
2. The £400 fine for non-submission of P35s is being enforced rigorously.
3. There is a new scheme coming where businesses will have to pay exactly what is owed for PAYE/NI the month it is owed. Currently you have been able to top up the payments at the end of the year. This is coming to an end.
