2007-08 Employer Annual Returns: Make sure yours is a success!

Your 2007-08 Employer Annual Return (P14s and P35) must be with us by 19 May 2008. But you do not have to wait until the last minute to send your return; you can send it as soon you have it ready.

So, what do you have to do to make sure your 2007-08 return is a success?

Do you have to send a Return?

If you have 50 or more employees or you sent last year’s return online, we will send you an online P35N in March to remind you of when you need to send us your return. Alternatively we will send you a paper P35 by early March if you have fewer than 50 employees, have not registered for online filing and sent a paper return last year. (You can still do it online for 2007-08 even if we send you a paper P35.)

You must send a return if you had to complete a Deductions Working Sheet (P11) for at least one employee during the year. That is where:

  • you deducted tax
  • paid an employee at or above the Lower Earnings Limit
  • you operated against an employee’s pay a tax code that we sent you

If none of these apply you must not send a return at all. Instead, you must contact your local HM Revenue & Customs (HMRC) office so that we can update our records and make sure that we do not send you any unnecessary penalties or reminders in future.

Avoid mistakes

Every year, we reject employer returns because they do not meet the Quality Standard. For example, using the wrong National Insurance category letter or using an incorrect character in the employee’s name. Avoiding common errors can help make your return a success.

Do it online

You must send your 2007-08 return online if you have 50 or more employees. But if you have fewer than 50 employees you can get £100 tax-free if you send your 2007-08 return online. We will credit your 2008-09 PAYE (Pay As You Earn) account with £100 as soon as we have processed your online return. We will also let you know when the payment has been credited. You can get your tax-free payment by deducting £100 from your next 2008-09 PAYE payment.

Online filing is a quick, secure and easy way to send your return to us. We will send you an email and an online message to say if your return has been successful or not. If you have not sent your return online before, you still have time to do it for 2007-08!

To get started:

  • Register and activate PAYE online
  • Chose how you send your return. We have a list of software products that can help you complete your payroll and meet our quality standards. If you have fewer than 50 P14s to send, you can use our own Online Returns and Forms PAYE Internet service. You can also ask a bureau or payroll agent to send your return online for you. If you have fewer than 50 employees, you will still get the tax-free payment.

If you send your online P14s and P35 separately, we have made some changes to the way that we will confirm that we have your Return.

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Test to check

You can send an online test return, if your software lets you, before you send your return for real. If you send a successful test you will get an email saying:

'The submission for reference XXX/XXXXX was successfully received on XX-XX-XXXX. If this was a test transmission, remember you still need to send your actual Employer Annual Return using the live transmission in order for it to be processed.'

You will also get messages in your software saying:

  • ‘9004: The EOY Return has been processed and passed full validation’ (which tells you that your test return has passed the Quality Standard checks)
  • ‘9001: This submission would have been successfully processed if sent under non test conditions’ (which confirms that you have sent a test return).

Remember: If you send a test return, you must also send your real return by 19 May or you could face a penalty. If you are not sure whether you have sent a test or a real return, check the message that we send to your software – you will only get the ‘9001’ message for a test return.

If your test return does not meet the Quality Standard, we will send you a message explaining why it has failed.

Help with your 2007-08 Return

There is lots of support available to help you complete your 2007-08 Return and to help you start filing online.

You can also look at:

  • Helpbook E10: Finishing the tax year
  • Guide to filing PAYE forms online and paying electronically

both of which are available on the CD-ROM.

Alternatively talk to an online filing recruiter.

They can help you with registration and activation and run presentations locally on how to go online.