Employers to submit in-year payroll forms online from April

All employers, regardless of size, were required to submit their end of tax year payroll return (forms P14/P35) online for the tax year 2009/10 onwards. From 6 April 2011 onwards, all employers regardless of size, mustsubmitin-year payroll forms“P45(1), P45(3), P46, P46(Pen), P46(ExPat)” electronically to HMRC.

There are three ways in-year forms can be submitted online:

  1. The employer uses an agent or payroll bureau.
  2. The employer uses payroll software that has the facility to transmit the forms electronically to HMRC - the employer will need to check that the payroll software can submit in-year forms.
  3.  The employer uses the free HMRC 'Online Returns and Forms - PAYE' product to submit the necessary forms online.

Employers not using a bureau or agent need to be registered with HMRC to use the internet to submit the forms (they should already be registered to enable the Year End to have been submitted last year).  Any employers who have started a PAYE scheme since April 2010 need to get registered as soon as possible to enable them to not only submit their End of Year Employers annual return, but also to submit their in-year payroll forms from April 6th 2011.

The process is not always straightforward and employers should start to submit in-year forms electronically as soon as possible before the deadline date to ensure that their systems are operational and therefore avoid potential penalties.

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