In this section:
PAYE for agents and advisers
PAYE for employers is switching to online management, with employers with 50 or more employees already filing end-of-year returns online. It will become compulsory for employers with fewer than 50 employees to file end-of-year forms too - although not before April 2010.
In-year forms will also increasingly have to be filed online - for employers with 50 or more employees, in-year forms (P45/P46) must be filed online by April 2009. Smaller employers will have to switch to online filing of in-year forms by April 2011.
So if you're starting to manage your client's payroll, using the PAYE Online for agents service will mean you'll be ready to meet all the online filing deadlines.
You can use the service to manage all your client's PAYE affairs. You can file their returns and other forms online, as well as receiving a 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 number
To register for the PAYE Online for agents service, you need a PAYE agent reference number. You can get this from our agent reference service.
For PAYE, you can apply for the agent reference number 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 number appears on screen.
You'll have to wait for up to four days after receiving your agent reference number 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 number, contact the Online Services Helpdesk on Tel 0845 605 5999.
Apply for an agent reference number online
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 third-party commercial software.
If you use third-party 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.
Forms that must be sent online
Employers with 50 or more employees must send in their end-of-year returns P35 and P14 electronically - either online or by using Electronic Data Interchange (EDI).
Employers with fewer than 50 employees do not have to file online until at least April 2010. But for each year that they have fewer than 50 employees and you send their return online, they could get a tax-free payment of:
- £100 for the 2007-08 returns
- £75 for the 2008-09 returns
Employers with 50 or more employees will have to file some in-year PAYE forms online from April 2009. Employers with fewer than 50 employees will have to do this from April 2011.
The in-year forms that they'll have to file online are:
- P45 Part 1 - details of employee leaving
- P45 Part 2 - new employee details
- P46 - details for a new employee without a P45
- P46 pen - this replaces forms P160 and PENNOT from April 2009 and is for pensioners who don't provide a P45 when they start to get a pension
You may want to start filing in-year forms online straight away. Then you'll be sure that you've got the software and procedures set up in time for the deadline.
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.
New quality checks for returns
We have introduced quality checks for all in-year forms from April 2008, whether they're paper or online forms. We'll return any forms that don't meet the quality standards for you to correct and send back. It saves time if you check the forms carefully before you send them to us.
Also from April 2008, you won't always have to send us form P46 when a new employee doesn't hand over a completed form P45 Part 3. You can collect the form P46 information in the way that suits you best - for example by email instead of on form P46. But you'll need to keep a record of where you got the information from.
You'll have to send us form P46 if:
- the employee has, or would have ticked statement A or B on form P46
- the employee's earnings reach the lower earnings limit for NI contributions - £90 per week for 2008-09
If you don't get a completed form P45 Part 3 or the P46 information, you must send us a completed form P46, section 1. Use code BR when you operate PAYE on the employee's earnings.
Changes from April 2009
Employers with 50 or more employees must start in-year online filing from April 2009.
Also from April 2009, all employers will have to show the date of birth and gender on all forms P45, P46 and P46 pen - whether they're paper or online forms.
As there's a lot of information to get from your clients, we'd strongly suggest that you start collecting it now.
Find out more about forthcoming PAYE changes
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 HM Revenue & Customs
