HM Revenue
& Customs (HMRC) has issued an alert to employers about
key PAYE changes coming in this spring.
The changes affect Employer Annual Returns and starter and leaver
PAYE forms:
* From April, employers with fewer than 50 employees must now
send starter and leaver forms – P45s, P46s and similar pension
information – online to HMRC.
* All employers who send their Employer Annual Return to HMRC
after the 19 May filing deadline will now receive a late-filing
penalty. Previously, an extra-statutory concession gave employers
extra time before HMRC charged a penalty, but this has been withdrawn.
* From this year, employers will be liable to a penalty if they
file their annual return on paper. Last year, no penalty was
charged for employers with five or fewer employees. But these
transitional arrangements have now ended.
HMRC will also be issuing PAYE penalties this spring for the
first time in two key areas:
* Penalty notices will be sent out in April to employers with 50
or more employees who have not filed starter and leaver forms
online to HMRC. The first penalties will apply for the three month
period to 5 April 2011, with further penalties being issued on a
quarterly basis.
* From May this year, HMRC will start sending out penalties for
late payment of PAYE. Employers will be liable for a penalty if
they haven’t made PAYE payments on time, and in full, from April
2010. The amount of the penalty will depend on the amounts paid
late and the total number of late payments made. Penalties will be
charged after the tax year-end.
Further information is available on the changes from the HMRC
website at www.hmrc.gov.uk/paye or via
its Employers Helpline on 08457 143 143.
For help and advice on paying HMRC visit www.hmrc.gov.uk/payinghmrc/index.htm.
Notes to editors
1. Employers must file an Employer Annual Return (EAR) – a P14
for each employee and a P35 summary sheet – by 19 May. They must
do this online (with some very limited exceptions, for example,
people who employ their own carer and those with religious objections).
2. If an employer has not previously sent their return online,
they must act now by registering for HMRC’s online service. More
information on filing online and registration can be found at www.businesslink.gov.uk/usingpayeonline.
3. To help employers get their return right first time, HMRC has
published a list of common errors to avoid on its website at www.hmrc.gov.uk/paye/payroll/year-end/errors.htm.
4. There are a number of ways that employers can send employee
starter and leaver details online. They can use commercial
software, HMRC’s free Online Return and Forms – PAYE Service,
HMRC’s Basic PAYE Tools (formerly Employer CD-ROM) or an agent can
do it for them online.
5. To avoid unnecessary administration work for employers and
HMRC, employers should not send paper starter and leaver forms to
HMRC where they have already filed online or intend to do so.
6. Follow HMRC on Twitter @HMRCgovuk.
NAT 28/11
Issued by HM Revenue & Customs Press Office Press
enquiries only please contact:
Contacts:
HMRC Out of Hours
Phone: 07860 359544
NDS.HMRC@coi.gsi.gov.uk
Jan Marszewski
Phone: 020 7147 0798
jan.marszewski@hmrc.gsi.gov.uk