PAYE online filing
HMRC have issued an urgent alert to remind employers that there have been some important changes to PAYE filing requirements. The deadline for submitting the 2009/10 PAYE annual return is 19 May 2010. This year the vast majority of businesses have to file annual and in-year forms online.
In prior years online filing was only compulsory for businesses with 50 or more staff. Businesses that have never filed online before should ensure that they are set-up to make online submissions in advance of the 19 May deadline. The annual return including a P14 for each individual employee and a P35 summarising the entire workforce must be filed.
A paper form P35 will only be issued to businesses exempt from online filing. The only employers who can still file paper returns are:
- employers with fewer than 50 employees who ceased 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 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
HMRC’s alert notice also includes a reminder of the new penalties for late payment of PAYE which are being introduced from May 2010.