See the latest update from the Inland Revenue, compiled especially for HRZone members, looking at e-filing, the obligations and incentives for complying ahead of time.
What is online filing?
Online filing means sending your information direct to our computer. It’s secure, convenient, quick and much more efficient than using paper, cutting down on storage space, postage and administration.
Doing it online can benefit employees too. It means they can get the right tax code more quickly and pension and benefit records are updated faster at the end of the tax year.
So far 323,000 employers have registered to use our online filing services.
If you want to send your Return using the Internet you must register for PAYE Online for Employers – Internet. To do this go to www.inlandrevenue.gov.uk and click on ‘PAYE for employers’ under ‘do it online’. Make sure you register in plenty of time. Registration takes seven days and you have 28 days to activate the service from the date of registration.
Deadlines
- If you have fewer than 50 employees, you do not have to start filing online until at least 19 May 2010
- If you have between 50 and 249 employees, you must start filing online from next year
- If you have 250 or more employees, you must file online by 19 May 2005
Cash rewards
Don’t miss your chance to get up to £825 tax-free from us by adopting the e-filing obligations before the due date. If you have fewer than 50 employees, and send us your Return online, you will get tax-free payments over the next five years.
- File online for 2004-05 (return due by 19 May 2005) and get £250
- File online for 2005-06 (return due by 19 May 2006) and get £250
- File online for 2006-07 (return due by 19 May 2007) and get £150
- File online for 2007-08 (return due by 19 May 2008) and get £100
- File online for 2008-09 (return due by 19 May 2009) and get £75
- Total cash reward is £825
To find out more, go to www.inlandrevenue.gov.uk/825
Your online filing choices
You can choose how to do your online filing. The options are:
- an agent or payroll bureau, who will file online for you
- commercial payroll software – www.inlandrevenue.gov.uk/payrollsoftware has a list of software that you can use to send your Return over the Internet
- Online Return and Forms – PAYE. This is the Inland Revenue’s free service that lets you file using the Internet.
Having an agent or payroll bureau to file for you is ideal for anyone who prefers to let someone else run their payroll. You don’t need a computer or an Internet connection and if you have fewer than 50 employees, you can still get up to £825 tax-free for filing online early even if it is outsourced.
The Internet is ideal for most employers. As well as being able to send and receive forms online, you get an instant acknowledgement that we’ve got your Return.
Quality matters
Your 2004-05 Return must reach us by 19 May and pass all our quality checks whether you file online or on paper. E-mail confirmation will be issued informing you whether your Return has passed or failed our checks.
If your Return fails our checks, we will tell you why. You must put right any mistakes and send your Return again by 19 May 2005 to avoid a late filing penalty.
You could also be liable to a penalty if you do not file your Employer’s Annual Return online when you should.
Further help
In February, we sent every employer an Employer’s CD-ROM 2005. This is an interactive electronic version of the Employer’s Pack. Both the CD-ROM and the Pack have most of the forms, helpbooks and guidance you may need. If you haven’t got your CD-ROM, you can get one free by calling T: 0845 7 646 646.
The CD-ROM includes a short video, ‘Get real with online filing!’
For further help call our Online Services Helpdesk on T: 0845 60 55 999. Lines are open Monday to Friday from 8.00am to 10.00pm and Saturday and Sunday from 10.00am to 6.00pm or check out our website at: www.inlandrevenue.gov.uk/payonline
