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Our newsletter this month contains a timely reminder for firms that employ staff and are required to file forms online to HMRC; a new power that HMRC can use to request information regarding tax credit claims; a few pointers for businesses registered for VAT as we approach the change to a 20% standard rate of VAT on 4 January 2011; and finally an outline of the potential changes to the pension rules being considered, particularly those that relate to the requirement to take a pension income by age 75.

Although not specifically mentioned in the body of this month’s newsletter we would like to draw readers’ attention to the impending deadline to claim Small Business Rate Relief in England for 2009/10; new applicants need to apply before 30 September 2010.

Online filing PAYE forms, P45 and P46

PAYE form P45 is issued to employees when they leave your employment. Form P46 needs to be completed when you take on a new employee who does not have a P45 from a previous employment. In both cases these forms need to be filed with H M Revenue & Customs.

Firms with 50 or more employees
You have been required to file these two forms online since 6 April 2009. From April 2010 failure to file online may result in penalties being charged. Depending on the number of forms which an employer has failed to file, penalties could rise to a maximum of £3,000.

Firms with less than 50 employees
You are required to file forms online from 6 April 2011.

The advice from HMRC to employers is as follows:

  • As all employers are filing year end returns online it makes sense for all firms, even those with fewer than 50 employees, to make use of the online process and file forms