Tax workers will today stage a protest outside the Treasury to complain about cuts in the opening times of their offices.

The Public and Commercial Services union said 58 tax enquiry centres across the UK were having their hours cut, sometimes to just one or two days a week.

The union claimed the cuts coincided with errors with tax codes sent out for the new tax year because of problems with a new computer system.

“Many customers were unable to get through on the telephone because of the high volume of callers and visited their local tax enquiry centre only to find it closed,” said a union spokesman.

The PCS claimed Revenue and Customs was now planning to cut hours in a further 117 tax enquiry centres.

Since 2006, HMRC has cut about 20,000 staff, with a further 5,000 planned to go by March, 2011, and more than 200 tax offices have either closed, are due to close or are under threat, the union maintained.

Peter Lockhart, national officer of the PCS, said: “HMRC’s face-to-face enquiry centres deal with some of the most vulnerable people in society. These cuts will hit pensioners, tax credit claimants, migrant workers and those running small businesses.”

PCS deputy general secretary Hugh Lanning said: “Tax enquiry centres provide a last resort for people when things go wrong, offering someone who can sort things out.”

ERC believe this will have a massive effect on our clients and the variety of queries that we assist them with daily, be it VAT registration delays or tax refund updates. We feel that this is bad news for business and accountants alike and will surely only increase frustration and disenchantment with HMRC, which is already at high levels.

You have been warned!

 Thanks Richard

Businesses are being reminded that they may face a penalty charge if they are late in paying their PAYE deductions in full.

The late payment penalties cover all employers and contractors, and apply to monthly, quarterly and annual PAYE deductions for periods starting on or after 6 April 2010.

Which means that they come into force as of May this year.

The penalties could be enforced on any PAYE sum that isn’t paid to HM Revenue and Customs (HMRC) on time. These include monthly or quarterly PAYE deductions; student loan deductions; construction industry scheme (CIS) payments; class 1 National Insurance contributions (NICs); annual payments of employers’ class 1A NICs; annual PAYE settlement agreements (PSA) payments; and PAYE determinations or charges raised.

Most deductions are due by the 19 of each month or the 22 if paid electronically.

HMRC has said that, where a penalty charge becomes liable, they will send out a letter explaining how much is owed and when it must be paid by. The letter will also set out what an employer should do if they believe the penalty is wrong, including details on how to appeal.

Penalties will apply to each PAYE scheme an employer may operate, so it’s important that the amounts due for each individual PAYE scheme are paid in full and on time.

Monthly or quarterly payments

Employers won’t be charged a penalty if only one PAYE amount is late in a particular tax year, except in those cases where the payment is more than 6 months overdue.

The level of the penalty will be calculated according to how much is owing and how many times payments are made late in a tax year. If an employer pays a proportion of what is owed on time, the penalty will only apply to the amount that is late.

If payments are made late between two and four times in a tax year, the penalty charge is 1 per cent.

If payments are made late between five and seven times in a tax year, the penalty charge is 2 per cent.

If payments are made late between eight and 10 times in a tax year, the penalty charge is 3 per cent.

If payments are made late 11 or more times in a tax year, the penalty charge is 4 per cent.

If the amount owing still hasn’t been paid in full after six months, then a penalty of 5 per cent could become liable. Another penalty of 5 per cent could be charged if the money has not been paid in full after 12 months.

Annual payments

Employers may face a penalty of 5 per cent of the amount owing if it has not been paid in full by what is called the penalty date.

For payments such as class 1A and 1B NICs, HMRC determinations and assessments, and amendments or corrections to returns, the ‘penalty date’ is 30 days after the due date.

Late payments may attract an extra 5 per cent penalty if the full amount owing hasn’t been paid within five months of the penalty date. And another 5 per cent charge could be imposed if the full amount owing hasn’t been paid within 11 months of the penalty date.

Any employer who is experiencing problems in paying their full PAYE amount on time should get in touch with HMRC before the payment is due. It may be possible to agree extra time in which to pay under the Business Payment Support Service.

If HMRC agrees to a timetable for making delayed PAYE payments, there won’t be any penalty charges for what is outstanding, so long as the business keeps to the agreement.

Thanks Richard