Below is an article written to a client regarding the new payee rules from 2010-2011
My responsibilities are to keep and complete a wages card for you for the new year form 06 April 2010 to 05 April 2011 but new responsibilities are to notify by email HM Revenue and Customs quarterly/monthly of the amount of NIC/tax due to them. For the new year the threshold at which you pay national insurance will be increased to £110 per week. This equates to £110 x 52 weeks = £5 720 per annum, £1 430 quarterly and £477 per month. Therefore if you write salary cheques at or below £1430 as a discipline at each period of three months then there is zero tax/NIC to pay.
Because there are new penalty provisions from MAY 2011 based on late notification to Revenue and Customs based on late notification for the previous tax year that is 060410-050411 there is a new rigour in filing and also notifying Revenue and Customs. (Please note that you must have a minimum salary of £97 * 52 = £5044 (from 2010-2011) per annum which equates to £1261 per quarter in order to qualify for your full state pension but which excludes the SERPS part). I am in the process of creating a list of key dates regarding your business. http://www.businesslink.gov.uk/bdotg/action/layer?r.s=tl&r.l1=1081986989&r.lc=en&topicId=1082030864
General penalty regime: http://www.hmrc.gov.uk/paye/problems-inspections/index.htm
Zero tax/NIC: http://www.hmrc.gov.uk/payinghmrc/paye-nil.htm
Tax/NIC is due: www.billpayment.co.uk
Time for payment: http://www.hmrc.gov.uk/paye/file-or-pay/payments/deadlines.htm#1
(By the 22nd of the month-shorter period than by post of the 19 of the month).
Penalty provisions (1% to 4%): http://www.hmrc.gov.uk/paye/factsheets/fpl_1.pdf