Nichola Ross Martin's Tax Consultancy

Tax penalties: failure to file PAYE returns online

Year end returns
Online filing of the Employer's annual return forms P35 and P14 is compulsory for most employers from 2009/10.

In year returns
From 2010/11 large employers are expected to file P45s and P45s online. Fines for failures apply from 6 January 2011 on.

From 2011/12 small employers are also expected to file P45s and P46s online. Fines for failures apply from 6 January 2012.

Tax penalties

• HMRC may impose a tax penalty for a failure to file a PAYE return online.
• The size of fine depends on the form or return and size of employer.
• The date on which fines start depend on whether the business is a large or small employer. Fines are raised on a quarterly basis.
• The size of penalty depends on the number of employees.
• There are exceptions for certain “care and support” employers and practising members of religious societies whose beliefs are incompatible with the use of electronic communications.

Penalties for failing to file the Employer Annual Return (P35 and P14s) online

The penalty per form depends on the number of employees, subject to a mximum of £3,000 (Statutory Instrument 2029/2009)

In-year returns: forms P45 and P46 for PAYE

When is the deadline?
The deadline for filing these forms online differs depending on the number of employees.:

• 50 or more employees: online filing was complusory after 6 April 2009.
• Fewer than 50 employees: online filing is complusory from 6 April 2011.