PAYE electronic communications
HMRC have identified 18 October 2009 as the date for determining if an employer is ‘large’ or ‘large or medium sized’ for the purpose of paying PAYE tax to HMRC by approved electronic means – eg: by direct bank transfer – from 2010-11 onwards.
A "Large" employer means one treated as paying PAYE income to 250 or more employees at 18 October 2009. "Large or medium sized" means an employer treated as paying PAYE income to 50 or more employees at 18 October 2009.
Also with effect from the 2010-11 tax year, employers classified as ‘large or medium sized’ will be required to file specified information such as Form P46 electronically.
HMRC have also now published guidance that specifies the standards of accuracy and completeness to be satisfied in respect of electronic PAYE returns for the tax year 2010-11.
These changes are part of continued moves by HMRC to encourage electronic filing and payment across all taxes.