HM Revenue & Customs (HMRC) are changing the way you have to file returns and make payments.
VAT businesses, Corporation Tax customers and employers need to be aware of new online filing and any electronic payment requirements that affect them or their business.
Although there is no statutory requirement to send your Self Assessment tax return online, HMRC recommend that you do.
This guide gives you an overview of the changes and directs you to more detailed information for your areas of interest.
On this page:
If you wish to file a paper return, it must reach HMRC by midnight on 31 October.
If you file online, you get longer to file - the deadline is midnight on 31 January. And if you do it online, the system automatically works out your tax for you - so you know what you owe or are owed right away.
There are a couple of exceptions to these deadlines, you can find out more about these and about filing your tax return online by following the links below.
Find out more about tax return deadlines
Understanding and using Self Assessment Online
From 1 April 2010, you must submit your VAT Returns online and pay any VAT due electronically if either of the following applies:
In the case of the first group, you must continue to submit all your VAT Returns online (including nil and repayment returns) even if your turnover drops below £100,000 in the future.
From 1 April 2012, all remaining VAT-registered businesses - those registered for VAT before 1 April 2010 with a VAT-exclusive turnover of less than £100,000 - will also have to submit VAT Returns online and pay any VAT due electronically
If you are still submitting VAT Returns on paper, HMRC strongly recommends you sign up to using the online service before April 2012, so that you have time to get familiar with the new service. Using the online service is quick and easy, and in most cases gives you extra time to submit your return and pay any VAT due.
Read more about moving from paper to online VAT Returns and paying electronically
From 1 April 2011, you must submit your Company Tax Return online for accounting periods ending after 31 March 2010.
Additionally, your tax computations and, with very few exceptions, the accounts that form part of your Company Tax Return, must be submitted in Inline eXtensible Business Reporting Language (iXBRL) format.
From the same date (1 April 2011) you must also pay any Corporation Tax and related payments that's due, for any accounting period, electronically.
Read more about submitting returns online and paying electronically
Almost all employers must now file their Employer Annual Return (P35 and P14s) online.
Employers with 50 or more employees are already required to file their employee starter and leaver forms (P45, P46, P46 (Pen) and P46 (Expat)) online too. If you're a smaller employer with fewer than 50 employees, you are required to file your employee starter and leaver forms online from 6 April 2011.
Only a very small number of employers will be exempt from the requirement to file online. There's a link to more information, for those still able to file on paper, at end of this section. Exempt employers can file online if they chose to do so.
Although it is only large employers (those with 250 or more employees) who are required to pay electronically, HMRC recommend that all employers make payments this way.
Introduction to filing PAYE online
Guidance for employers who can either file online or on paper
Guidance on managing PAYE for employers
The switch to online management and electronic payment of tax comes as a result of a review of HMRC Online Services.
Lord Carter of Coles' report - published in March 2006 - recommended moving to online filing for businesses and IT-literate groups by 2012.
View Lord Carter's report (PDF 521K)
HMRC are working hard with individuals and businesses to make the transition as smooth as possible. They are always interested in your feedback so, if you've got comments on HMRC's Online Services, please use the feedback form to let them know what you think.
