Employers are reminded that 2009/10 PAYE annual returns must, in most cases, be filed online. The deadline for submitting the returns is not until 19 May 2010 but it is important to be well prepared especially if you have not filed these returns online before. The Returns will include a P14 for each individual employee and a P35 summarising the entire workforce.

Employers who have not filed online before will receive a paper form P35PN to notify them of the deadline and the fact that submissions must be made online. These notifications are being issued now and should all be received by 16 March 2010.

A paper form P35 will only be issued to businesses exempt from compulsory online filing:

• employers with fewer than 50 employees who ceased operating PAYE during the 2009-10 tax year and file their return by 5 April 2010
• employers entitled to operate PAYE using the Simplified Deduction Scheme for domestic employees provided they haven't previously received a tax-free payment for online filing
• practising members of religious societies or orders whose beliefs are incompatible with the use of electronic methods of communication
• employers who employ someone to provide care or support services at or from their home - subject to a number of conditions
• limited companies filing a return solely to submit an entry in box 28 of form P35 ('CIS deductions suffered') - these returns cannot be filed online