Under what circumstance can employers make quarterly rather than monthly PAYE payments?

The ability for employers to make quarterly rather than monthly PAYE payments is determined by the amount of their average monthly PAYE and National Insurance (NIC) payments. Specifically, if these average payments exceed £1,500, it generally indicates that the employer has a higher payroll and financial activity, warranting the need for frequent remittances to ensure timely payments to HM Revenue and Customs (HMRC).

For employers whose average monthly PAYE and NIC payments are under this threshold, they are not required to have such strict payment intervals and can opt to pay quarterly instead. This flexibility allows smaller employers to manage their cash flow better, as they may prefer to withhold cash for operational needs until it's absolutely necessary for tax commitments. Thus, the condition relating to average monthly payments being above £1,500 is central to understanding why this option is correct.