A YORKSHIRE accountancy firm is warning businesses in the region that they must file their Employer Annual Returns online by the end of this week to avoid penalties from HMRC. 

Nigel Westman, Partner of Clough & Company, explains: “Any employer that has had to maintain a P11 or equivalent payroll deduction record for at least one employee during the tax year has an obligation to file an Employer Annual Return, which means almost every business is affected by this deadline.

“The Employer Annual Return is made up of P14 forms for every employee as well as a P35 form which combines and summarises the end-of-year payroll totals for all employees and must be completed online by Saturday 19th May.” 

HMRC were recently criticised for failing to make employers aware that they would incur penalties for the late filing of the Employer Annual Return. Nigel adds: “Businesses should have received an 'Employer Annual Return Reminder’ at the end of April but with the deadline falling on a Saturday this year it’s important that they act now to avoid the penalty which is £100 per 50 employees for each month or part month that your Return is outstanding.”

From the end of May, HMRC will issue 'P35 Interim Penalty Letters' to relevant employers.
For further information visit www.hmrc.gov.uk or for details about Clough & Company and its services visit www.clough.co.uk