Which parts of the new HM Revenue & Customs rules on filing online apply to us?

There are major changes to the way VAT-registered traders, employers, limited companies and other organisations file and pay their tax to Her Majesty’s Revenue & Customs (HMRC).

Businesses with a VAT-exclusive turnover of £100,000 a year or more now have to file their returns online, and pay electronically, although the actual records should be kept in the same way. This applies to VAT returns for accounting periods beginning on or after April 1, 2010.

From May there will be new penalties for late payment of PAYE - including the tax and national insurance employers deduct from staff’s salaries, as well as employers’ national insurance contributions and student loan deductions.

A HMRC spokesman said: “The penalty amount will vary, depending on whether the payment is due on a monthly, quarterly, or annual basis - anything from between 1% and 5% of the amount outstanding.”

Changes are also occurring for corporation tax. For accounting periods that end after March, where the return is sent in, on, or after April 1 next year, returns will have to be filed online, and payment made electronically. The HMRC spokesman adds: “Companies with less complex tax affairs can use HMRC’s free filing software, while those companies that use commercial software will find their software does the XBRL job for them.”

From this year all employers must also file their Employer Annual Returns online - P35s and P14s - although this is already the case for those employing more than 50 staff.