HMRC issues reminder of PAYE changes

Contractors and small businesses have been reminded that they must file their employer annual returns online later this year.

In a change to the PAYE system, firms with less than 50 employees will no longer be able to file paper applications and those who attempt to submit their forms in this manner may be liable to receive a fine.

Consequently, HM Revenue & Customs (HMRC) urged those affected to bear in mind the May 19th 2010 deadline for all online submissions and is seeking to remind them by writing to all employers in February.

"Please look out for this information and take the time to read it," urged HMRC spokesman Stephen Banyard.

He added that it is essential for employers to ensure that they are well prepared for the switch to online submissions.

Contractors are getting increasingly used to submitting forms online, with data from the tax body revealing that a record number of taxpayers filed their self-assessment tax returns in this manner prior to the January 31st deadline.

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