HMRC  compulsory online filing for the year end reports P14 and P35 come into effect from tax year April 2010

As an employer if you are running a PAYE (Pay As You Earn) scheme here in the UK you will have been recently sent reminders with requests for the annual P35 form, which is a summary of all your business’ PAYE activity during the previous financial year. You also have to submit a P14 for each employee that you employed during the previous year.

From 13 August 2009 new legislation means that your 2009-10 Employer Annual Return and all future Employer Annual Returns must be filed online. And, under government proposals, you will have to send your PAYE starter and leaver forms (P45, P46, P46 (Pen) and P46 (Expat) online from 6 April 2011.

Your Employer Annual Return is due by 19th May each tax year, and you must send this to HMRC online.

If you missed the 19th May deadline - The first you will know about this will be in October when you receive a notice of penalty determination for £400.00 for failing to file online.

HMRC  will reject forms P35 and P14 that are not perfect according to the quality standard and these will be returned to the employer, who must then resubmit them correctly. Any small imperfection in the returns will then mean that the return is sent back and the employer will be subject to a late filing penalty of £100 per 50 employees (or part) per month up to a maximum of 12 months under TMA 1970, s 98A(2)(3)

We are able to file your end of year nanny tax or small business returns P35 & P14 electronically online now.