Businesses, including umbrella companies, no longer have the opportunity to file paper copies of their Employer Annual Returns.
HMRC is writing to employers in the UK reminding them that they must complete their PAYE returns online no later than 19th May if they wish to avoid facing a penalty charge of up to £3,000.
This year there will be a new range of penalties for businesses that file returns after the deadline. In addition to income tax returns, employers can be fined for late filing of NICs, Construction Industry and student loan deductions.
Companies that believe they will have problems meeting their payment obligations are urged to call the HMRC Business Payment Support Service, on 0845 302 1435, before May 19.
It may also be beneficial for any business that is concerned about the new system of online filing to contact an accountancy firm who can provide them with guidance.
As a result of the new system of filing, employers who file their Employer Annual Return online themselves will no longer need to retain a hard copy of the forms and therefore HMRC will not keep such a large stock of hard-copy P35s or P14s.
The LITRG [Low Income Tax Reform Group] is concerned that some of the UK’s SMEs will not be prepared for these changes. They have been urging business owners to make sure they have the requisite software to enable them to complete these transactions online.
For a business with fewer than 50 employees, the necessary software is available on the HMRC website whilst a free Employer CD-ROM will be available to businesses with less than 10 employees.
Larger companies, however, will need to buy a commercial software program to complete their returns online. A list of accredited providers of PAYE products can be found on HMRC’s website.
The LITRG is also warning businesses to register in advance for the online service. They explained that it can take up to 7 days for your activation code to arrive so employers should take action sooner rather than later.
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