TOOLS · PAYE PENALTY

PAYE arrears penalty estimator. What's the late number?

Estimate the percentage penalty and HMRC interest on a PAYE/NIC bill paid late. Penalty band scales with the number of defaults in the tax year.

BoE base3.75%·HMRC7.75%

Your inputs

Amount owed (£)

Days late: 30

1 day1 year

Late payments this tax year (this one included): 2

1st11th+

1st default in year is no penalty. 2nd to 4th: 1%. 5th to 7th: 2%. 8th to 10th: 3%. 11th and above: 4%.

Total HMRC cost

£409

Penalty (1% band)£250
Late-payment interest at 7.75%£159
Total payable on top of the bill£409

How the bands work

HMRC count defaults across the whole PAYE tax year (6 April to 5 April). The first default is a free pass on percentage penalties. Interest still accrues from day one. Bands escalate as defaults accumulate. A clean tax year resets the count.

Borrow to clear it →About PAYE arrears funding

Indicative only. Actual penalty bands and interest follow the regime in HMRC compliance manuals.

This calculator is a working estimate, not formal advice.