Business owners reminded to file PAYE forms or face penalties

Employers are being reminded to submit their PAYE forms to HM Revenue and Customs when a worker leaves or joins their company, to avoid being fined.

The Institute of Chartered Accountants in England and Wales (ICAEW) has warned that business owners that fail to file the forms correctly may face a penalty of up to £3,000.

Bosses with 50 or more employees must file their forms online, while employers with fewer than 50 workers don’t need to submit them online until April 2011. In the meantime they can file paper copies of the form, although they are advised to get ahead of the game and start submitting forms via the internet as soon as possible.

Anita Monteith from the ICAEW said: “To avoid penalties employers need to ensure they do not send HMRC forms on paper when they should be filed online, or send two versions of the same form. Online filing is quick, secure and convenient, and can cut down on errors and the delays they can cause.”

The ICAEW has advised employers and payroll managers to examine their payroll practices and systems to prepare in advance for these changes.

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