Submit PAYE forms or face a fine
The Institute of Accountants of England and Wales (ICAEW) are reminding employers to submit their in-year PAYE forms to HM Revenue & Customs (HMRC) when a new employee joins their company or a current employee leaves. The P45 and P46 starter and leaver forms must be filed correctly as failing to do so may result in penalties.
Employers with 50 or more employees are required to file their forms online. Subject to the number of forms an employer fails to submit online means they could face a penalty of up to £3,000.
If an employer has less than 50 employees, then it will not be compulsory to file the forms online until 6 April 2011. HMRC is however advising such employers to file their End of Years returns online so that they can get used to the system that will become compulsary in 2011.
Filing online before the 2011 deadline will give employers plenty of time to learn how the process works and to get used to any new software or business processes. As filing online will become compulsary, employers and payroll managers may need to examine their payroll practices and systems to prepare for the changes says the ICAEW.
Anita Monteith, ICAEW’s Tax Faculty Technical Manager, said: “To avoid penalties employers need to ensure they do not send HMRC forms on paper when they should be filed online, or send two versions of the same form. Online filing is quick, secure and convenient, and can cut down on errors and the delays they can cause.”
Posted by Anil Champaneri
