Pictured above: Chris Beardmore, a Director of DJH Accountants Ltd

Payroll tax changes could cost unwary firms a cash 'fine', Staffordshire accountancy firm DJH Accountants Ltd has warned.

Employers face a penalty under new rules from HM Revenue and Customs (HMRC) covering e-filing of annual returns and staff PAYE forms, as well as late payment of PAYE.

From this month businesses with fewer than 50 employees must send starter and leaver forms - P45s, P46s and similar pension information - to HMRC online, rather than on paper. Employers will now also incur a penalty if they submit their annual return on paper.

Chris Beardmore, a Director of DJH Accountants Ltd, based in Newcastle-under-Lyme, said: "Last year no penalty was charged for employers with five or fewer employees, but these transitional arrangements have now ended."

Meanwhile, all employers submitting their annual return to HMRC after the May 19 deadline will receive a late-filing penalty. "Previously HMRC granted a concession giving employers extra time before charging a penalty, but this has now been withdrawn," said Mr Beardmore.

HMRC will also be issuing PAYE penalties this spring for the first time in two key areas.

Penalty notices will be sent out this month (April) to firms with 50 or more staff which have not filed starter and leaver forms online. The first charges will apply to the three-month period to April 5, 2011, with further penalties being issued quarterly.

From next month (May) HMRC will start imposing charges for late payment of PAYE. Employers will be liable if they fail to make payments on time - and in full - from April 2010.

"The size of the penalties - to be charged after the tax year-end - will depend on the amounts paid late and the total number of late payments," said Mr Beardmore.

"It is important that Staffordshire SMEs are fully aware of these changes - otherwise they could be in for a nasty and expensive shock from the taxman."