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Almost all employers are now required to send their Employer Annual Return (form P35 and forms P14) and in-year PAYE forms, including P45 and P46 to HM Revenue & Customs (HMRC) online.
If you send any PAYE forms by paper or magnetic media when you’re required to send them online, you will face penalties. These penalties will still be due even if you subsequently file an online version of the form(s) for which you’ve been penalised.
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If you send HMRC your Employer Annual Return (or part of your return) on paper or magnetic media, when you’re required to file online, you may be charged a penalty.
The precise amount of the penalty depends on the number of P14s included in your return and is up to a maximum of £3000.
The penalty applies regardless of whether you’ve filed your return on time or late. And it will still apply even if you try to put things right by filing your return again online.
More about the requirement to file your Employer Annual Return online
Almost all employers must file the in-year forms shown in the table below online. If you do not file online when required to do so, HMRC may charge you a penalty. The penalty will range from £100 up to a maximum of £3000 depending on the number of forms that should have been filed online.
| Form | When to use |
|---|---|
| P45 Part 1 | when an employee leaves your business |
| P45 Part 3 | when a new employee starts |
| P46 | when a new employee starts, but has no P45 from their previous employer |
| P46 (Pen) | for sending details of a new pension or annuity that you start to pay |
| P46 (Expat) | for certain employees seconded to work in the UK |
If you don't agree with a penalty notice you receive from HMRC, you have the right to appeal against it. You can read more about how to do this in one of our related guides - follow the link below.
How to appeal against an HMRC decision - direct tax
File your Employer Annual Return online: P35 and P14s
File your PAYE in-year forms online: P45, P46, etc
