HMRC issues PAYE return warning

The taxman has warned businesses that most of them must file their PAYE returns online by 19 May or face stiff penalties.

Almost all employers are now required to file their Employer Annual Return- form P35 and forms P14 electronically HMRevenue & Customs said.

"If you send HMRC your Employer Annual Return (or part of your return) on paper or magnetic media, when you’re required to file online, you may be charged a penalty," the taxman said on its website.

"The precise amount of the penalty depends on the number of P14s included in your return and is up to a maximum of £3000."

If you do not have to make a 2009-10 return you must inform the taxman.

The easiest way to do this is to use the No Employer Annual Return form to make email notification, HMRC said.

There are separate deadlines for sending a number of in-year PAYE forms, including P45 and P46, online, HMRC added.

Employers with 50 or more employees must already file the P45 and P46 forms online, while under government proposals employers with fewer than 50 employees must file them online from April 2011.

"If you send any PAYE forms by paper or magnetic media when you’re required to send them online, you will face penalties," the taxman added.

"These penalties will still be due even if you subsequently file an online version of the form(s) for which you’ve been penalised."

Further reading:

The PAYE online filing penalty regime