Revenue regulations for electronic tax service put to parliament

March 21, 2001

Revenue regulations for electronic tax service put to parliament

The Inland Revenue recently launched an Internet service that will allow employers and their agents or payroll bureaux, to send PAYE end of year returns and a range of other PAYE forms over the Internet.

The Internet Service for PAYE is accessible through the Inland Revenue Website http://www.inlandrevenue.gov.uk and links to the Government Gateway, the centralised registration service for electronic transactions with Government.

The Inland Revenue yesterday laid regulations before Parliament to support the Internet Service for PAYE.

Copies of these regulations will be available shortly from The Stationery Office. They will also be available on the Inland Revenue website.

Details

1. The regulations are the Income Tax (Electronic Communications) (Miscellaneous Amendments) Regulations 2001 (SI 2001 No.1081 ).

2. The regulations also amend the regulations for the Internet service for Self Assessment. The amendments mean that a taxpayer will be able to challenge the record on the Inland Revenue’s computer system by producing evidence that what is recorded is incorrect or not what was sent.

3. Employers and their agents can register to use the new service now. The Internet Service for PAYE is accessible through the Inland Revenue Website http://www.inlandrevenue.gov.uk

4. From around 9th April, registered users will be able to send the following PAYE End-of-Year return forms over the Internet:

P35 – Employer’s Annual return
P14 – Individual Employee’s End-of-Year Summary
P38A – Employer’s Supplementary Statement.

5. The service will be extended to include other PAYE forms and returns in later months.

6. Employers that use the Internet service to send in their 2000-2001 PAYE end of year returns by 19 May 2001 and make at least one electronic payment of tax for 2000-2001 by 19 April 2001 will qualify for a one-off discount of £50. Employers who qualify for the PAYE discount, and also paid tax credits through their payroll in 2000-2001, will qualify for a further discount of £50.

7. The PAYE and tax credit discounts will also be available to those employers who use an agent, payroll bureau, or other intermediary, to send their 2000-2001 end of year return over the Internet. To qualify for the discount the employer will need to register on-line for the Internet service and notify the Inland Revenue of their agent’s unique Gateway Agent ID. The employer must also make at least one electronic payment of tax for 2000-2001.

Supplementary Information

1. Legislation in the 1999 Finance Act enables Customs & Excise and Inland Revenue to develop new electronic services as an alternative to traditional paper-based communication.

2. The launch of the Internet service for PAYE was announced in a press release issued on 28 February 2001. Information about the Inland Revenue’s Internet services and discounts can also be found on the electronic business pages of the Inland Revenue’s website at http://www.inlandrevenue.gov.uk/ebu/index.htm

3. The Prime Minister has set a target that 50% of transactions with government should be capable of being done electronically by 2002. Internet technology will help deliver the Government’s vision of making services available 24 hours a day, seven days a week.

4. The Government is also taking a leading role in encouraging enterprise in electronic business and in the development of the infrastructure needed to support the competitiveness of UK business in the growing e-commerce markets.