PAYE (Pay As You Earn) Online

CIS Deductions

If you operate PAYE and the Construction Industry Scheme (CIS) under the same Employer PAYE Reference you must enter your total CIS deductions from your contractor's monthly returns (CIS 300) into your online P35.

If you have offset some or all of your CIS deductions made from your own income against your own company's tax bill you must show the amounts from the CIS132 on the P35. This only applies if you are a limited company.

If you omitted CIS deductions from your P35 you must let us know in writing as soon as you realise the error. You will need to send us an amendment, along with an explanation of why the error occurred. Amended information does not have to be sent in the same way as the original return. Amendments can be made using the HM Revenue & Customs (HMRC) free software. Some commercial software will also allow you to send an amendment. You may want to check this with your software provider. Or you may send amendments on paper using approved stationery.

Employee leaves at year end

There are occasions when an employee leaves their employment before 6 April but receives their final payment after 6 April. In these cases the final payment is deemed to have been made in the later tax year and must be included in end of year returns due by 19 May of the following year. For example, payment made on 30 April 2009 to an employee who left on 31 March 2009 should be included in the return due by 19 May 2010.

When filing online you will need to ensure that details for these employees appear on your employee list for the year in which payment was actually made.

Expenses claimed under s.336 ITEPA 2003

Forms P11D will be processed more quickly when they are filed online because the process is automated. Where P11Ds are e-filed there is no opportunity to submit a s.336 claim electronically and it is not feasible to link claims made in writing to the P11D before an automatic coding has been issued. In the majority of circumstances s.336 claims relate to benefits that are not automatically included in the current year code, so this does not cause any problems.

Expenses payments and benefits

Forms P11D (Return of expenses payments and benefits), P11D(b) (Return of Class 1a National Insurance contributions) and P9D (Expenses payments and income from which tax cannot be deducted) can be filed online by employers and their agents. There is no rep-population function for the forms. These returns can be made for the current end of year but not for previous years - at the moment there is no plan to expand this function.

Currently we do not expect to mandate the online filing of any forms relating to benefits in kind.

Vehicles

A CO2 emissions figure must be entered in the relevant box on the online P11D for any vehicle registered on or after 1 January 1998. If the registration date for a vehicle is prior to 1 January 1998 the box for the CO2 emissions figure is not displayed.

Form P46(Car) (in respect of a car provided for the private use of an employee or director) can be filed online. You may wish to note that HMRC does not currently plan to introduce a P46(van).

Nil P11D

Please note that there is no requirement to file 'nil' P11Ds.

Issue of coding notices

There is an annual bulk issue of PAYE coding notices. This usually takes place in February to allow most employers and agents to implement changes in time for the next tax year.

It is possible for codes to be issued earlier than this using a priority service, but only if:

  • we receive a request advising us that the normal issue period is too late to allow revised codes to be implemented
  • our records show that notifications are to be issued by P6/P9 or lists
  • data is not transmitted by Electronic Data Interchange facilities
  • the request is received prior to the deadline date for priority code issue requests, which may vary, but is normally around 27 January

Multiple agents

It is possible for an employer to authorise more than one agent to act for them. For example, the payroll may be managed by a payroll bureau while someone else handles the directors' payroll, or one agent files P11Ds while another files the P35.

Only one agent can view notices and reminders, however, and an employer will need to think about privacy and confidentiality and be happy for the nominated agent to have access to information about employees for whom that agent does not act. The other agents can send information to us for the employer, but are unable to view any notices and reminders from us. The options are:

  • Employer receives notices on paper: all output will be sent to the employer who will sort and distribute the information among all the agents.
  • Nominated agent receives information on paper: the employer can elect to have a nominated agent receive all notices and reminders on paper and sort and distribute it between all the relevant agents. The employer must ensure that the nominated agent is one for whom a form 64-8 has been completed and sent to HMRC.
  • Nominated agent or employer receives notices and reminders online: the notices to be dealt with by other agents need to be downloaded or printed, and distributed.

An employer may wish to authorise an agent to discuss their PAYE affairs with HMRC without that agent receiving any of the routine output/correspondence. This type of authority must be arranged by sending a letter to the HMRC office which deals with the client's PAYE scheme.

No employee National Insurance number held

The National Insurance number is a key identifier for HMRC records, and it helps us and your employee if you can provide the correct number on all forms and returns. If you do not have the number please follow the guidance here:

New employee

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