HMRC tightens PAYE rules

Employers, take note! HMRC has issued an alert to employers about key PAYE changes coming this spring.

From April, employers with fewer than 50 employees must now send starter and leaver forms (P45s, P46s and other similar pension information) online to HMRC. Failure to do this online will land you with a fine.

Employers with 50 or more employees who haven’t filed starter and leaver forms online to HMRC will also receive penalty notices. The first penalties will apply for the three-month period to April 5, 2011, with further penalties being issued on a quarterly basis.

Additionally, all employers who send their Employer Annual Return to HMRC after the May 19 filing deadline will now receive a late-filing penalty. Previously HMRC had made concessions to give employers extra time, but this has now been withdrawn.

Finally, from May this year, 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 of PAYE paid late and the total number of late PAYE payments made. Penalties will be charged after the tax year-end.

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