Introduction
1.1 Who should read this practice note?
Firms that file PAYE returns to HMRC.
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2. What is the issue?
HMRC is moving towards requiring all employers to file their returns online. They are doing this incrementally according to the size of the firm.
From 6 April 2009 , firms with 50 or more employees must file the following forms online:
- PAYE starter and leaver forms - P45, P46, P46(Pen) and P46(Expat)
- Employer Annual Return (P35 and P14s).
Paper forms filed after 6 April may incur a penalty.
Online return requirements for firms with fewer than 50 employees are:
- 2009/10 Employer Annual Return, due by 19 May 2010
- starter and leaver forms on l ine from 6 April 2011
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3. Advantages of getting started
The benefits of filing online before the above dates include:
- Exchange information securely with HMRC.
- Save time and money.
- Reduce administration errors.
- Get up-to-date PAYE information, eg employee tax codes, quickly from HMRC.
- Employers receive a tax-free payment of £75 for filing the 2008-09 Annual Return online. This return is due by 19 May 2009 .
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4. How to apply
You have to apply for an agent reference number and register to file PAYE online.
To do this you have to go to HM Revenue and Customs website.
Once registered, you are free to choose from several PAYE online filing options, including:
- installing a commercial software package with an online filing function
- using the free HMRC Online Return and Forms - PAYE service, primarily designed for small employers or those sending small numbers of forms
- using electronic data interchange (EDI), suited to very large employers or employers with a large turnover of staff
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5. More information
Visit the HMRC website:
Download a free podcast explaining the forthcoming changes for large employers.
For phone enquiries:
- Commercial software customers - contact your software supplier.
- To contact HMRC's Online Return and Forms helpdesk by phone, call 0845 60 55 999
- EDI users - contact your HMRC EDI Account Manager
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6. Further products and support
6.1 Law Society publications
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