Employers urged to prepare now for spring changes to PAYE.
HM Revenue and Customs (HMRC) is urging businesses to get ready for major changes to PAYE coming in this spring. From May, two key PAYE changes come into effect:
1. All employers must file their Employer Annual Return (P35 and P14s) online by the 19 May deadline – there is no longer a paper filing option for small employers with fewer than 50 staff. Employers who file their return on paper, even if it’s before 19 May, could receive a penalty.
2. HMRC is introducing new penalties for late payment of PAYE. Under these changes, employers and contractors may incur penalties if they don’t make payments of PAYE, National Insurance contributions, Construction Industry Scheme deductions and student loan deductions on time, and in full. Penalties will be calculated as a percentage of the late amount and, for in-year payments, the percentage charged increases as the number of late payments in the year increases.
To file VAT or PAYE online, employers must first register with HMRC’s online services by visiting www.online.hmrc.gov.uk, clicking 'Register' under the 'New user' section and then following the instructions.
Stephen Banyard, Director of HMRC’s Business Customer Unit, said:
“If you’re a VAT-registered trader or an employer, make sure you’re up to speed with all the VAT and PAYE changes coming in this spring. If you’re well prepared for the changes, you’ll help avoid a last-minute rush when the new measures take effect.”
Hope this helps.
