Small businesses must file returns online

Small business owners are being advised to prepare for the compulsory online filing of end of year returns.

The change from paper to online filing of end of year returns will come into place for most employers with 50 or fewer employees from April 5th, reports TaxationWeb.

It can take up to a week for employers to receive their activation code once they have registered online, so they are advised to register as soon as possible to avoid missing the deadline of May 19th.

Employers could face a fine of up to £3,000 if they fail to file their online forms on time.

HM Revenue and Customs (HMRC) details on its website that the reason behind these changes to online management comes as a result of a review of online services commissioned by the government.

Lord Carter of Cole's report stated HMRC should invest in infrastructure for online filing. He said that a move to online filing "can help customers to fulfil their tax obligations accurately, more quickly and provide them with greater certainty".

For more information on Tax and Accountancy visit our Tax and Accountancy section.