What are the duties of the employer under the PAYE system?

Employers paying by non-electronic means must pay all tax and national insurance contributions (NICs) that they have deducted from their employees in a tax month (along with their own NICs) within 14 days of the end of the tax month. Employers with 250 or more employees must pay electronically, but the deadline for making payments is within 17 days of the end of the tax month. An employer may deduct 92%, or all if it is a small employer, of any statutory maternity, paternity and adoption pay paid that month from the money that it sends to Debt Management and Banking (formerly the Collector of Taxes). In some cases statutory sick pay can also be deducted under the percentage threshold scheme.

Late payment at the end of the tax year will automatically incur interest charges for the employer. From 6 April 2010, late payments of monthly (or quarterly) remittances attract penalties.