Do you need to send PAYE Returns to HMRC on a monthly basis as a small business?

Small employers have the option to elect to pay their PAYE/NIC to HM Revenue & Customs on a quarterly basis and if they elect to do so they are also able to submit a quarterly return of the amounts due. In order to qualify for this arrangement you must have a monthly PAYE/NIC payment of less that £1,500. The actual rules say that you must have a ‘reasonable expectation’ that the average monthly amount will be less than £1,500. I would normally recommend that employers take advantage of this arrangement where eligible because it reduces the returns and payments due and therefore the number of times you risk a penalty by submitting a return or making a payment late.