April 2011 News

PAYROLL YEAR END & CIS

5^th April 2011 – End of tax year 2010/11.

All employers are required to file a year end report online – P35, P38A (if applicable) together with P11/P14 for every person in their employment during the tax year 2010/11.  This also applies to the Construction Industry Scheme. 

• The payroll year end forms must be filed by 19 May 2011. 

• Submit any underpayment of PAYE/NIC due to the Revenue for 2010/11 by 19^th April 2011.   If you pay electronically this deadline is extended to 22 April 2011.

• As from 6 April 2010 a new penalty regime was introduced by HMRC for non payment of PAYE/NIC by the due dates.  This regime should be taken seriously as the penalties are quite severe.

• All employees are entitled to receive a copy of the P14, which is known as a P60 by the 31 May 2011.  Please ensure you keep this safe as you will require it if you or your agent file a self assessment tax return.

• New emergency tax code from 6/4/11 is 747L, followed by either week 1 or month 1.

• Standard rate National Insurance is increasing by 1%

• Paper returns may receive a penalty unless you are one of the following:-

employers entitled to operate PAYE using the Simplified Deduction Scheme for personal and domestic employees – provided they haven’t previously received a tax-free payment for online filing

practising members of religious societies or orders whose beliefs are incompatible with the use of electronic methods of communication

employers who employ someone to provide care or support services at or from their home – subject to a number of conditions

limited companies filing a return solely to submit an entry in box 28 of form P35 (‘CIS deductions suffered’) – these returns cannot be filed online

You may be in receipt of benefits from your employer.  If this is the case, you should receive from your employer a form P11D detailing your expenses for the tax year ended 5 April 2011 by 6 July 2011.  Please retain this, as you will need it if you file a self assessment return.