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HMRC have issued a reminder to large employers to prepare for important PAYE changes coming into effect in April 2009.

From 6 April 2009, it becomes mandatory for employers with 50 or more employees to send certain in-year PAYE information online to HMRC. The new rules cover the following items:

• form P45(1) - details of employee leaving;
• form P45(3) - new employee details;
• form P46 - employee without a form P45; and
• similar information for people receiving a pension.

To file online, employers must first register with HMRC's Online PAYE service - go to http://www.hmrc.gov.uk and click on 'PAYE for Employers' under the 'do it online' menu.

Once registered, there are several ways to file: HMRC's free 'Online Returns and Forms' software; commercial payroll software; or the Electronic Data Interchange (EDI) - a secure phone line suitable for large numbers of forms. Alternatively, employers may use a payroll agent or bureau.

HMRC's Simon Lidster said:

"Filing in-year employee information online is quick, easy and convenient. As well as avoiding postal delays, the information is processed much faster by HMRC. This means employees' records and tax codes are updated more quickly, and they are much more likely to have paid the right tax at the end of the tax year.

"If you're a large employer, it's a good idea to get online now, so you'll be well prepared for the changes."