What happens once I have confirmed my benefits in PayFit?
After the benefits have been reviewed and confirmed in the app, the status of the submission should change to pending, which means that the submission is now in the queue to be submitted to HMRC.
Our submission process will start mid-June, in advance of the HMRC deadline of 6th July 2024. Once we make the submission, we will send out an email to confirm and the status of the submission will change in the app.
When will the liability show on my account?
You should see the liability appear on your PAYE for employers online account between 6 July and 22 July.
What will it look like?
It will show on your Annual statement for the previous tax year, in this case for this year 23-24. At the top, you'll see Bill for P11D for Class 1A National Insurance. This is the amount that HMRC has calculated after receiving your P11D submissions.
When should I pay my bill?
If paying electronically, your payment of Class 1A national insurance must clear into HMRC’s bank account by 22 July following the end of the tax year. For cheque payments, it's 19 July.
When paying electronically, you need to allow enough time for HMRC to have cleared funds by 22 July. You can pay using a number of different payment methods, including Faster Payments that clear on the same or next day. However, beware that some electronic payment methods can take 3 banking days or more to reach their account.
What if I want to pay my bill electronically?
To pay in July 2024 for your 2023 to 2024 Class 1A National Insurance contributions, you’ll need to add 2413 to the end of your Accounts Office reference.
24 is for the tax year ending 2024 and 13 is for the 13th payment in the tax year, i.e., the Class 1A national insurance.
E.g., if your accounts office reference is 123PA00012345, add 2413 to create a new reference of 123PA000123452413 (no spaces).
If you don't include the final four digits, HMRC will allocate the payment to your current tax year's liability and send a demand for your Class 1A national insurance contributions payment.
For further information, please refer to HMRC's guidance to making Class 1A payments.
Note: PayFit does not include Class 1A national insurance in your HMRC payment files due to the unique payment reference needed for this one-off payment.
What if I send my payment late?
If your Class 1A National Insurance payment is not made on time, HMRC may charge you the following penalties:
5% penalty of any amount unpaid 30 days after the due date.
an additional 5% penalty on any amount still unpaid 6 months after the due date.
a further 5% penalty on any amount still unpaid 12 months after the due date.
What happens if I send my submission late?
You may be charged similar amounts as HMRC would typically charge you for late RTI submissions. For more details, please follow HMRC's instructions here.