PAYE Year End Deadlines Loom

Employers must meet their 2011-12 tax deadlines through April and May or risk fines, HM Revenue & Customs (HMRC) has warned. Following the end of the tax year on 5 April, small firms with staff have been reminded to complete their PAYE (Pay As You Earn) end-of-year paperwork. With most employers now required to file their forms online, the key document to complete is the Employer Annual Return (forms P35 and P14), which must be submitted by 19 May. Even if you are exempt from filing online, your paper form must also reach the taxman by the same date. The Employer Annual Return includes a P14 for each employee and a P35 summary sheet. If you are new to filing online, you need to register for the PAYE online service. Completing the registration process can take up to seven days, and ther... »

Employers Must Hit May PAYE Deadline

Employers have been warned to file their Employer Annual Returns online with HM Revenue & Customs (HMRC) before the 19th May, or risk being charged a late-filing penalty. Employers that miss the deadline will be charged £100 per month that the return is late. Previous concessions have been removed, meaning that all businesses need to be careful to meet the deadline. “Changes came into effect this year, which mean the Employer Annual Returns sent to HMRC after the 19 May filing deadline will almost certainly result in a late-filing penalty.” said an HMRC spokesman. “Last year, no penalty was charged for employers with five or fewer employees, but these transitional arrangements have now ended.” “Previously, an extra-statutory concession gave employers extra... »

PAYE Errors: Not for Employers to Fix

Small-business owners are not responsible for resolving the tax problems that found six million taxpayers paying the wrong amount, the Association of Chartered Certified Accountants (ACCA) has said. HM Revenue & Customs is sending out letters to 4.3 million people saying that they have paid too much tax after a new computer system calculated the wrong PAYE codes. Simultaneously, it is trying to recoup £2 billion from 1.4 million people who were undercharged. ACCA head of taxation, Chas Roy-Chowdhury, said: "It’s not the employer’s responsibility to correct this. Employers will need to implement the new coding notice which they will receive once a code has been agreed by HMRC and the employee concerned, but other than that they have no obligations." "It’... »

PAYE – The System Can No Longer be Trusted

Taxpayers should be given a sympathetic hearing HM Revenue & Customs (HMRC) must ensure it is able to deal with the inevitable flood of queries from tax payers who are concerned that they may have to pay up for Pay As You Earn (PAYE) mistakes, says the Association of Chartered Certified Accountants (ACCA). ACCA’s head of taxation Chas Roy-Chowdhury says: “HMRC’s recent announcement is worrying for many ordinary tax payers. While it is important we pay the right amount of tax at the right time, it is also important that our tax authority bills us correctly and keeps correct records.” “It is also important that HMRC is geared up to deal with this mistake. I am concerned that they will not have the number of staff available to deal with queries from those who don’t... »