Free tax and PAYE tools for small businesses
9 March 2011
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HM Revenue & Customs has launched a range of free tools to help small businesses get their business records in shape, as well as some basic PAYE tools to help employers run their payroll systems.
The first four new products, which are suitable for small businesses, sole traders and the self-employed, have been produced in advance of the launch of HMRC's new business record checks programme later this year, which will impose penalties for significant record-keeping failures.
 
If you find it a challenge to keep good business records, putting a proper system in place will not only help you to feel confident that you are paying the right tax, but you'll keep up-to-date with how much you owe suppliers and how much you are owed.
 
We recently reported that, later this year, HMRC will start a programme of business records checks that will look at the adequacy and accuracy of business records in SMEs, and could potentially result in fines in excess of £3,000. So now is the time to invest a bit of time and effort into making sure your business records are up to standard.
 
HMRC believes that 40% of SMEs – that's 2 million businesses – don't keep adequate records, even though they are legally bound to, to ensure they make a correct income tax or corporation tax self assessment return. They also estimate that failure to take reasonable care in record-keeping leads to a loss of around £6.5billion in tax every year.
 
The help that HMRC are offering to businesses to help solve these problems include basic factsheets and online tools:

New PAYE tools

HMRC have also launched new basic PAYE tools for employers, which replace HMRC's Employer CD-ROM and cover all the CD-ROM's interactive features, plus are automatically updated with the latest information and figures.
 
Employers who have used the CD-ROM will need the new tools for the remainder of the 2010-11 tax year and for future tax years. The tools can be downloaded by visiting www.businesslink.gov.uk/basicpayetools.
 
In addition, employers are being reminded that PAYE information, forms and guidance are all available online at www.businesslink.gov.uk/payeformsandpublications and that paper versions are now only available in limited circumstances from the Employer Orderline.

If employers are using the employer database on the 2010 Employer CD-ROM they must make sure it is updated so that it is compatible with the tools. Go to www.hmrc.gov.uk/employers/cdrom for more details.


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