New penalties for late filing and payments under PAYE mean that it is even more important to get the running of your payroll right.

• From 19 May 2010 all employers must file their PAYE returns online. Late filing penalties starting at £300 will apply.
• New penalties for late payments made under PAYE, including tax, National Insurance, Student loan deductions and Construction scheme industry deductions will also apply. The penalties are based on a percentage of the amounts owed and percentages will increase in line with the number of late payments during the year.
  
  

HMRC have announced a new Tax Health Plan Disclosure Opportunity. Doctors and other medical professionals are being encouraged to make full disclosure of any undeclared income by the 31 March 2010. If they take advantage of the disclosure they can expect a reduced penalty of 10%.

Once the deadline passes HMRC anticipate making targeted investigations at medical professionals who have not made voluntary disclosures.

31st of January 2010 is the deadline for filing self assessment tax returns for individuals, partnerships and trusts. Penalties apply to late filed returns. It is also the deadline for settling tax liabilities in respect of 2008-2009 and for making first payments on account for 2009-2010. From 28 February 2010 a surcharge of 5% of the tax is charged where a balancing payment due on 31 January 2010 remains unpaid.

The date for filing private company accounts with Companies House has been brought forward from 10 months to 9 months. All private companies with accounting periods starting on or after 5 April 2008 will be affected by the change. For example, a company with the accounting year end of 30 April 2009 will need to file accounts by 31 January 2010.

The temporary reduction in the rate of VAT ends on 31 December 2009. From 1 January 2010 the standard rate is 17.5%.

Online filing for VAT returns

From 1 April 2010 it will be compulsory to file VAT returns online if

• You register for VAT after that date, and
• Your business turnover exceeds £100,000 per annum

Existing businesses that are already registered for Vat will have the choice to make paper or electronic returns.

HM Revenue & Customs have released new advisory fuel rates for payments to employees who drive cars provided by their employers. These rates are to be used for all journeys from 1 December 2009.