HMRC Alerts Employers On UK PAYE Changes
The UK is to see a raft of changes to its Pay As You Earn (PAYE) regime this spring, and HM Revenue and Customs (HMRC) has issued an alert explaining the key alterations affecting annual returns and other forms.
The UK’s 2012 tax year opened on April 6, 2011, and, in the coming weeks, HMRC will bring in changes to the PAYE scheme, and begin issuing new penalties in two areas for the first time.
The regime changes are as follows:
- From April, employers with fewer than 50 employees must now send ‘starter and leaver’ forms (P45s, P46s) and similar pension information online to HMRC;
- An extra-statutory concession allowing employers extra time to file Employer Annual Returns before the imposition of a penalty has been withdrawn. From now on all employers who send their Employer Annual Return to HMRC after the May 19 filing deadline will receive a late-filing penalty; and
- Transitional arrangements providing for employers with five or fewer employees to escape a fine for paper filing have ended. From 2011, employers will be liable to a penalty if they file their annual return on paper.
Penalty notices will be sent out in April, 2011 to employers with 50 or more employees who have not filed starter and leaver forms online to HMRC. The first penalties will apply for the three month period to April 5, 2011, with further penalties being issued on a quarterly basis.
From May, 2011, HMRC will start sending out penalties for late payment of PAYE. Employers will be liable for a penalty if they haven’t made PAYE payments on time, and in full, from April 2010. The amount of the penalty will depend on the amounts paid late and the total number of late payments made, and will be charged after the tax year-end.