Even the smallest businesses could face penalties of more than £2,000 a year for failing to file PAYE tax returns online and on time, under new proposals put forward by the taxman.
By October 2013, HM Revenue and Customs (HMRC) 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.
HMRC is currently consulting on proposed penalties, with the consultation closing on 6 September 2012. Under the proposals, smaller firms could face penalties totalling more than £2,000 a year, and larger businesses would face even larger fines.
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 donít get caught out when any changes take effect.
For help or advice email firstname.lastname@example.org