Employers who have never used the new system to file Pay As Your Earn (PAYE) returns in real time are being sent an email this week telling them to do so by the end of the year.
As in previous years, if they don’t send HM Revenue and Customs (HMRC) their PAYE information at the end of the year they face penalties of at least £100. The penalty will depend on their number of employees and the length of time involved.
HMRC’s Director General for Personal Tax, Ruth Owen, said:
Over 99% of PAYE records are being successfully reported in real time and the majority of businesses say they find the new system easy to use. So those who have not begun using the system should not stick their heads in the sand. They need to act now to ensure that they don’t get a penalty at the year end.
Employers who no longer need their PAYE schemes should tell HMRC as soon as possible. HMRC has lots of help and support for employers on its website.
PAYE schemes that pay their employees only annually, and which are registered with HMRC as annual schemes, should also make sure that they are ready to send their PAYE information to HMRC by the deadline.