Compulsory online filing for small employers PAYE and NICs: draft legislation

Lord Carter's Review of Payroll Services in 2001 made a number of recommendations relating to online filing of PAYE and NICs returns by employers.

Under proposals announced by Government in the 2002 and 2006 Budget, compulsory online filing will start to apply to small businesses and employers from April 2010. It is already compulsory for employers employing 50 or more employees to file their annual returns and in year forms online. The draft amendment regulations (PAYE (PDF 58K) & NICs (PDF 46K)), which will extend the requirement to file annual returns online to small employers, are released today.

These Regulations amend

• the Income Tax (Pay As You Earn) Regulations 2003 (S.I.2003/2682; “the PAYE Regulations”)
• the Social Security (Contributions) Regulations 2001

HM Revenue & Customs welcome comments on these draft regulations and would appreciate these by 3 July 2009. Any comments should be made to Lynn Carroll on Tel 020 7147 2636 or Nicky Prys-Jones on Tel 0131 473 4839. Alternatively Lynn Carroll and Nicky Prys-Jones can be contacted by email, or you can write to them at the following address:

PAYE, SA & NICS
Area 1E/08
100 Parliament Street
London
SW1A 2BQ