Mon, 24 Jan 2011
Businesses need to be aware of forthcoming changes to the pay-as-you-earn (PAYE) tax system, HM Revenue & Customs (HMRC) has warned.
Alterations are being introduced this year that will require companies to file their Employer Annual Returns online, with small enterprises employing less than 50 staff no longer having the option to provide the information on paper.
The body has warned that companies could receive a fine if they submit the data through the post, even if it is received before the May 19th deadline.
Stephen Banyard of HMRC - which was formed in 2005 following the merger of the Inland Revenue and HM Customs and Excise departments - said that employers need to ensure they are "well prepared" for the "major" changes.
"We will be writing to affected employers over the coming weeks, so please look out for this information and take the time to read it," he remarked.
In addition to this, new penalties for late payment of PAYE are also being implemented from May onwards.
Under the revised terms, enterprises could incur fines if they do not make their payments on time, with the amount owed being calculated from a percentage of the sum that was received after the deadline.
Mr Banyard also noted that HMRC will be cutting down on its stocks of hard-copy PAYE forms, so business will have to "carefully consider" their stationary requirements before submitting requests for new stationary to the government.
HMRC began issuing reminders for filing Employer Annual Returns earlier this month, stating that all businesses should have received a notification by March 16th.
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