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Employers & PAYE - preparing for change and the filing of 2011 end of year forms.
There are significant changes in 2011 to the administration of PAYE and national insurance for employers. These changes include:
- Employers must file an electronic form P35 with HM Revenue and Customs by 19 May. However the 7 day extension to this deadline that was previously granted by HM Revenue and Customs is no longer available.
- HM Revenue and Customs will no longer issue a free PAYE software CD to all employers. Instead a free download is available from: www.businesslink.gov.uk
- Changes to PAYE regulations have previously been notified to employers by HM Revenue and Customs through a paper bulletin three times each year. This will cease. The information is now best obtained by e-mail update. To register for this service go to:
www.hmrc.gov.uk/paye/forms-publications/register.htm
- Paper PAYE forms P45 (employee leaving) and P46 (employee starting) are no longer valid from the new tax year. Online filing of this information is mandatory.
Where a new employee refuses or delays signing a form P46, the default tax code (0T M1) applied by the employer is much more onerous from 6 April 2011.
Similarly payments made to former employers will, from 6 April 2011 no longer be with basic rate tax deducted. The code to apply to such payments, 0T will ensure that tax due at 40% / 50% is collected through the PAYE system.
- Employees can now be provided with an electronic, rather than a paper copy of their end of year pay and tax summary, form P60 provided that facilities for secure delivery and viewing are adopted.
Bowker Orford acts as the payroll manager for a substantial number of large and small employers. Please do contact us if you do need assistance with payroll matters.
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