Partner Article

Complete tax returns online, or risk £2000 fine

SMEs must ensure that they return their PAYE tax returns online and on time or face a fine of £2000 under new proposals by the taxman.

As of October 2013, HM Revenue and Customs wants all employers to file pay and tax details of their employees online as wages are paid, rather than waiting until the end of the tax year.

They are currently consulting on proposed penalties until 6 September 2012. These changes could mean that smaller firms could face penalties of more than £2,000 annually, while larger businesses could face even larger fines.

Graham Purvis, Partner at Robson Laidler LLP, said: “Although these proposals are still at the consultation stage, businesses of all sizes need to be aware that significant changes in the way they file their PAYE tax returns are likely to come into effect from next year.”

“For many people, particularly owners of smaller businesses, this will seem like yet another burden on their time and resources.

“Seeking advice now on the implications for your business will help you to ensure that you don’t get caught out when any changes take effect.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .