PAYE changes for small employers
HMRC are reminding Employers that starting with the 2009-10 tax year almost all Employer Annual Return filings (P35 and P14s) must be filed online. Previously the requirement to file online was only a requirement for employers with 50 or more employees. If you are a smaller employer and have not filed online previously, you will need to plan how you will ensure you are able to satisfy your new online filing obligation.
Employers can file the forms using commercial payroll software, HMRC’s own software (known as ‘Online Returns and Forms – PAYE’ service) or by Electronic Data Interchange (EDI). It will still be possible for a payroll agent to make the filing on an employer’s behalf. Penalties can be levied where the forms are not submitted online.
The only employers who will be permitted to file paper returns for the 2009-10 tax year are:
Employers with fewer than 50 employees who cease operating PAYE during the 2009-10 tax year and file their return by 5 April 2010
Employers entitled to operate PAYE using the Simplified Deduction Scheme for domestic employees (using forms P12 and P37) provided they haven’t previously received a tax-free payment for online filing
Practising members of religious societies or orders whose beliefs are incompatible with the use of electronic methods of communication
Employers who employ someone to provide care or support services at or from their home – subject to a number of conditions
Limited companies filing a return solely to submit an entry in box 28 of form P35 (‘CIS deductions suffered’) – these returns cannot be filed online.
The 2009-10 annual return filings are due by 19 May 2010.