LITRG explain software requirements for online filing

Date: 18th February 2010

Small businesses may not realise the preparation involved in gearing up for filing PAYE returns on line, it has been claimed.

Ahead of the introduction of HM Revenue & Customs' (HMRC) compulsory online filing for the end of the tax year 2009-10, the Low Income Tax reform Group (LITRG) has said there are certain things businesses need to do in order to avoid a late filing penalty.

The LITRG has now urged business owners to ensure they have the appropriate software to carry out the online tax returns.

According to the organisation, firms with less than ten employees can use the Employer CD-ROM, which has a P11 calculator.

HMRC also has a free online service, which can accommodate 50 forms.

However, if either of these methods are insufficient, the LITRG has urged businesses to make sure they have adequate software and advised them to seek out an accredited software firm on HMRC's website.

The LITRG has also moved to remind businesses of the May 19th deadline and warned that late filers may be fined up to £3,000.