Changes came into effect this year, which mean Employer Annual Returns sent to HMRC after the 19 May filing deadline will almost certainly result in a late-filing penalty.
Previously, an extra-statutory concession gave employers extra time before HM Revenue & Customs charged a penalty, but this has now been withdrawn.
From 2011, employers will be liable to a penalty if they file their annual return on paper (with some exceptions, such as certain individuals who employ their own carer). Last year, no penalty was charged for employers with five or fewer employees. But these transitional arrangements have now ended.
Smaller employers, or their agents or bureaux, can file their employee data securely online using HMRC's 'Online Return and Forms - PAYE' product, while larger employers can purchase a range of commercial software.
Employers can file their return online at any time of day. This means they can send returns outside of peak times (10am-4pm on working days and 13-19 May).
Employers with fewer than 10 employees can use HMRC's Basic PAYE Tools (formerly Employer CD-ROM) to file their Employer Annual Return online.
To help you get your return right first time, HMRC has published a list of common errors to avoid on its website.
