HM Revenue and Customs (HMRC) has reminded employers of the importance of filing their annual returns on time.

Employer annual returns (P35 and P14s) must be submitted by 19 May and online.

Changes that have come into effect this year mean annual returns sent to HMRC after the 19 May filing date will almost certainly result in a late-filing penalty.

Previously, an extra-statutory concession gave employers extra time before HMRC charged a penalty. This has now been withdrawn.

Also from this year employers will be liable to a penalty if they file their annual return on paper (with some very limited exceptions, such as certain individuals who employ their own carer).

Last year, no penalty was charged for employers with five or fewer employees, but these transitional arrangements have come to an end.