HM Revenue and Customs has published a reminder that all PAYE documents from firms with fewer than 50 employees must now be filed online.
HMRC are gradually phasing out paper filing altogether, and PAYE is the latest casualty in the move online. The filing of paper VAT returns has already been phased out.
With the PAYE deadline of May 19th looming, employers may wish to familiarise themselves with the system. In order to access online filing business owners require a Government Gateway username and PIN. These are posted by HMRC, and business owners are being advised to allow sufficient time for them to arrive.
May 2010 also sees the introduction of a new penalty schedule for late filing and late payment of PAYE liabilities. Firms that pay late just once in a year will receive no penalty. Those who pay late between two and four times will receive a penalty of 1 per cent of the total amount late over the whole tax year. Penalties increase in line with the number of late payments.
Some small businesses can use HMRC's desktop software to file their PAYE returns. This software is available on the HMRC website and allows you to file easily and securely.
If you are having difficulty paying your tax bill you should contact the Payment Support Service on 0845 302 1435.
