In this section:
- PAYE for agents and advisers
- Self Assessment for agents and advisers
- VAT for agents and advisers
- Corporation Tax for agents and advisers
- Tax credits for agents and advisers
- Acting as a tax agent for a CIS contractor or subcontractor
- Capital Gains Tax basics for agents and advisers
- Inheritance Tax for solicitors and tax advisers: the basics
- Trusts for agents and advisers: first steps
- Get started with our online services for agents and advisers
PAYE for agents and advisers
PAYE for employers is switching to online management. Starting with the 2009-10 return, almost all employers are now required to file their Employer Annual Return (P35 and P14s) online. Previously this only applied to employers with 50 or more employees.
In-year forms must also increasingly be filed online.For employers with 50 or more employees, online filing of key in-year forms (including P45 and P46) is already required. Smaller employers will have to switch to online filing of these forms from 6 April 2011.
You can use the PAYE Online for agents service to manage all aspects of a client's PAYE affairs. You can file their returns and other forms online, as well as receive a wide range of notices and reminders. The service should also help avoid mistakes and make sure that your client's PAYE returns are filed on time.
This guide shows you how to effectively set up and manage PAYE for employers as their agent and find more guidance on managing your client's payroll.
On this page:
- Setting up PAYE Online for agents
- Managing PAYE where a client uses more than one agent
- Forthcoming changes to PAYE and online services
- More guidance on managing PAYE for employers
Setting up PAYE Online for agents
The PAYE Online for agents service lets you file your client's PAYE returns and manage all their PAYE affairs online. Before you can use the service you'll need to register. You can then send us PAYE information on your client's behalf.
If your client also wants us to communicate with you directly on their payroll management and send you their notices and reminders, you must also ensure they formally authorise you using the online agent authorisation service or paper form FBI 2.
Get an agent reference
To register for the PAYE Online for agents service, you need a PAYE agent reference. You can get this from our agent reference service.
For PAYE, you can apply for the agent reference online. You'll need to enter:
- your business name - or your own name
- a contact name
- your address
- postcode
- telephone number
- fax number
- email address
Submit the completed form and stay online until your agent reference appears on screen.
You'll have to wait for up to four days after receiving your agent reference before you can register for the online service. This is to allow time for your details to be uploaded onto our system.
If you lose your agent reference, contact the Online Services Helpdesk on Tel 0845 605 5999.
Apply for an agent reference online (Opens new window)
Register for PAYE Online for agents
Agent authorisation
If your client wants us to communicate with you about their PAYE affairs, we need their formal authorisation to do so. The easiest way to manage this is online, using the online agent authorisation service.
To get online authorisation, you'll need to have already registered for the PAYE Online for agents service. And to complete the authorisation online you'll need to have to hand:
- your client's employer PAYE reference and Accounts Office reference
- the authorisation code we sent to your client - this will have 'PE' at the beginning
Alternatively, your client can also authorise you to manage their PAYE online by using paper form FBI 2.
More detailed guidance on agent authorisation
Managing users and assistants
Once you've registered for PAYE Online for agents, you can set up other 'users' and 'assistants'. This lets different people in your organisation use the service. By having more than one person set up as a user, you can arrange cover for holidays, sickness and other absences.
Setting up several users also lets different people in your organisation take responsibility for different processes or clients.
Users can:
- use the registered online services you've activated
- register for, or remove services
- assign users and other assistants to services
- create and remove other users and assistants
- change their own registration details
- view codes and notices delivered through the online service
Assistants have more limited access. You and other users can set up one or more assistants, who can:
- use the online services assigned to them by a user
- send in returns and forms
- change their own registration details
Each user and assistant that you set up will have their own unique User ID.
Find more detailed guidance on how to manage users and assistants
Setting up records
You'll need to set up client records to use the PAYE online service. You can do this either with our free software or with commercial software.
If you use software, most packages will collect what you need to send automatically from the payroll records.
List of available PAYE software
If you use our free software, you'll need to create records of employees, including their name, National Insurance number and works number, if there is one. You'll also need to set up employer details. The system keeps a log of all your actions.
Managing PAYE where a client uses more than one agent
A client may want more than one agent to act on their behalf and deal with payroll issues.
Our PAYE for employers system is only able to send out information such as tax code notices P6 and P9 to one agent. Clients who have more than one agent dealing with their payroll matters must choose which one 'lead' agent they want to receive this information.
If you are becoming the 'lead' agent, you must be authorised using either the agent online authorisation service or by completing form 64-8. Clients can authorise us to send information to you either online or by using form FBI 2.
If your client is already using an agent who continues to act for them as the 'lead' agent, please do not submit a form 64-8 for your authorisation as this may result in the 'lead' agent's details being overwritten.
If your client wishes to nominate you as a second agent, they should send a letter to us with details of the secondary authority so we can update our records accordingly.
And remember, if you only wish to file information online on behalf of your client and do not need us to communicate with you directly, you can do so without submitting a form FBI 2.
Forthcoming changes to PAYE and online services
A number of changes are being made to PAYE. These mean that you'll have to do more online filing on your client's behalf. You can file online either over the Internet or using Electronic Data Interchange (EDI).
The Employer Annual Return
Almost all employers are required to file their Employer Annual Return (P35 and P14s) online. The only employers who can still file on paper are:
- employers with fewer than 50 employees who cease operating PAYE during 2009-10 and file their return by 5 April 2010
- employers entitled to operate PAYE using the simplified deductions scheme for domestic employees (using forms P12 and P37)
- practising members of religious societies or orders whose beliefs are incompatible with the use of electronic methods of communication
- employers who employ someone to provide care or support services in or from their home – subject to a number of conditions
- limited companies filing a return solely to submit an entry in box 28 of form P35 ('CIS deductions suffered') – these returns cannot be filed online
- employers and certain employees who have special arrangements with HM Revenue & Customs (HMRC) for the direct collection of PAYE tax and/or National Insurance
In-year forms including P45 and P46
If your client has 50 or more employees, then from 6 April 2009 it has been a requirement to file the PAYE forms shown in the table below online.
If your client has fewer than 50 employees, then the deadline for starting to file these forms online is 6 April 2011.
| Form | When to use |
|---|---|
| P45 Part 1 | When an employee leaves |
| P45 Part 3 | When a new employee starts |
| P46 | When a new employee starts, but has no P45 from their previous employer |
| P46 (Pen) | For sending details of a new pension or annuity. (This form was introduced on 6 April 2009. The online version was previously referred to as PENNOT.) |
| P46 (Expat) | For certain employees seconded to work in the UK. This form was introduced on 6 April 2009. |
You can also use the PAYE Online for agents service to send in a range of other PAYE forms and to receive notices and reminders online. Making full use of the service will save you time and make it easier to meet your clients' PAYE obligations.
More guidance on managing PAYE for employers
You can find practical advice on managing your client's payroll responsibilities in our 'PAYE for employers' section.
The section includes everything you need to know to successfully manage PAYE for your clients, including:
- year-round payroll
- Statutory payments
- new employees, changes and special situations
- dealing with expenses and benefits
- managing payments to HMRC
