End-of-Year Forms P35

Forms P35 for 2009/10 due by 19^th May 2010 etc must be filed online. You no longer have the option of submitting a paper copy of the form P35. If GRANTS prepares the business payroll then as in previous years we shall file the P35 online on your behalf except that this year you will not receive an online filing incentive payment.


Late Payment Penalties

Also from 6 April 2010, HMRC is introducing new penalties for late payment of PAYE – this includes Income Tax, National Insurance Contributions (NICs), student loan deductions and Construction Industry Scheme deductions. Under these changes, employers may incur penalties if they don’t make the relevant payments on time, and in full. Further details regarding the new penalties are below:

• the amount of the penalty will depend on the number of defaults in any 12 month period. The first time a taxpayer defaults, they will not receive a penalty;
• a second late payment and any subsequent failures in the default period will attract a penalty of 2% of the tax unpaid, rising to 5% of tax unpaid;
• further penalties of 5% of any amounts of tax still unpaid at 6 and 12 months; and
• late payment penalties will not be charged during an agreed time to pay arrangement with HMRC unless the taxpayer defaults or misuses the arrangement.
  

It is also worth noting that for penalties relating to late payments that occur in the 2010-11 tax year, HMRC will only send notifications of late payment penalty charges after the end of the tax year.
 
 
Business Support Service 0845-302-1435

Employers who think they may have difficulty paying should call HMRC’s Business Payment Support Service, before the payment is due, on 0845 302 1435. If you do, and HMRC agrees time to pay, late payment penalties will not be charged – provided the business keeps to the agreement.

More information on the new penalties can be found on the HMRC website by clicking here.