It is that time of year again!

Your Employer Annual Return needs to be in by 19 May 2011.

So here are our top ten tips for completion.

  • If you are a sole director / single employee company paying yourself a small salary you may still need to file an Employer Return.Your accountant may do this for you but check that it is included in your fee.Do not assume that if you have no tax to pay that an annual return is not due – this can be incorrect!
  • You have to complete a return for all employees who have been paid at or over the lower earnings limit
  • File the returns by 19 May 2011.Late filing can result in a penalty which is £100 per 50 employees for each month or part month that your return is outstanding
  • Almost all returns must be filed on line. So much sure that you are set up to do this well in advance of the due date.
  • You must have paid any outstanding PAYE and NI by 19 April 2011 (22 April 2011 if you pay electronically)
  • By 31 May 2011 you have to give a form P60 to all employees who your completed a P11 for and who still worked for you on 5 April 2011
  • You need to complete a P11D for relevant employees by 6 July 2011. Late filing can result in a penalty which is £100 per 50 employees for each month or part month that your return is outstanding
  • Any NI due on expenses and benefits on kind must be paid by 19 July 2011 (22 July 2011 if paying electronically)
  • If you are set up as an employer you must still file a return. If you have no entries then you will file a nil returnYou can file a nil return by using this link:HMRC Employer Nil Return
  • If this all sounds too complicated – get an accountant to do it for you!

More information is available at the HMRC web site here:

http://www.hmrc.gov.uk/paye/payroll/year-end/annual-return.htm

David Eaton

Posted by David Eaton

David is a Chartered Accountant and Director of SME Strategies (smestrategies.co.uk) which offers tailored support to ambitious SMEs and gives mentoring to owner managers.

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