HM Revenue & Customs (HMRC) is urging employers to file their PAYE end-of-year returns by the 19th May deadline or they could face a penalty.

Employers with fewer than 50 employees will get a £100 tax-free incentive payment if they file online.

HMRC points out that if you want to file online for the first time then you must first register with HMRC's online PAYE service. It can take a week to get the activation PIN after you've registered, so it's important to register as soon as possible. Alternatively, you can ask an agent or payroll bureau to file your return online and the filing incentive will still be payable to you.

For further help and assistance please contact janice@a4gsolutions.co.uk who will be happy to help you. Alternatively, visit the HMRC website at http://www.hmrc.gov.uk/payeonline or call the HMRC Employer Helpline on 08457 143 143.

Hot on the heels of the P35 deadline comes the 6th July deadline for the filing of the P11D forms detailing expenses and benefits in kind paid to employees, with any resultant Class 1A National Insurance due to be paid by 19th July.

Unless employers have submitted the P11D forms with the P35, a separate submission must be made by this date either on paper or online, otherwise a penalty will be charged.

However, in many cases, particularly where director/shareholders receive benefits in kind, it is more tax efficient for them to not receive benefits in kind and instead treat any payments on their behalf as dividends from the business.  

If you require any assistance on the production of your P11D’s or would like to review the tax efficiency of such benefits, please email janice@a4gsolutions.co.uk or call 01474 853856.

“The great end of learning is not knowledge but action.”

PETER HONEY