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Employers Urged to Seek Advice Now to Avoid Costly Payroll Penalties

The first few months of a new financial year is a particularly busy time for payroll administrators, having to deal with the seemingly endless filing requirements of HMRC.

Similarly, with payroll requirements for businesses becoming increasingly more complex, particularly relating to employees' rights, Thomas Westcott's team offer the following advice:

Forms P60 showing the annual amount of wages and tax deductions for the year must be supplied to each employee.  The end of year annual return, known as a P35, providing particulars of all employees for the year to the 5 April should have been filed with HMRC by the 19 May 2011 to avoid statutory penalties.

If employees have a benefit in kind or have expenses paid for on their behalf by their employer, a form P11D must be completed for each employee who receives a benefit. This provides details for the year to the 5 April 2011 of all such payments. A copy must be handed to each employee and copies must be filed with HMRC by 6 July 2011. 

Completion of these returns of benefits can be a difficult matter for many employers, particularly when deciding which details must be entered on the form and which expense reimbursements can be ignored.   The employer may have an additional liability for Class 1A National Insurance Contributions based on these benefits depending on the nature of the benefit.

For further information  contact one of our local offices and speak to a member of our team for further advice.