Businesses will no longer be allowed to file paper returns for employee pay records, employers have been warned.
HMRC said all employers will be required to submit Employer Annual Returns online, even if they have fewer than 50 staff.
The changes come into effect this spring and mean that anyone who hands in a paper return is liable to pay a fine, regardless of whether they make the May 19 deadline.
“Major changes to PAYE filing and payment are only a matter of weeks away, so employers need to make sure they’re well prepared for them,” said HMRC’s Stephen Banyard.
“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.”
As of May 2010, HMRC is also issuing penalties for late payments of all PAYE related bills including income tax, National Insurance contributions (NICs), student loan deductions and Construction Industry Scheme deductions.
However, business owners who think they may have trouble meeting the payment deadlines can avoid the penalties by contacting HMRC and agreeing a payment schedule. To contact the Business Payment Support Service call 0845 302 1435.
To file returns online, businesses must register with HMRC’s PAYE online service at www.hmrc.gov.uk/paye. Free filing software is available for small businesses.
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