Filing online

What are the benefits of filing online?

Filing online is fast, secure and convenient. As well as avoiding postal delays, it helps us to process the information that you send to us more quickly. This means that your employee records and tax codes are updated faster.

You can file online at any time, day or night, which is convenient for you. And you can stop, save work and start again whenever you want. The process is also secure as we use the highest standard of encryption available.

How to get help with filing online

If you are not already filing online and would like more information about doing so:

  • go to our website
  • see the Learning Zone on your Employer CD-ROM (call the Employer Orderline on 0845 7646 646 for a free copy)
  • contact the Online Services helpdesk on 0845 6055 999

Registering for HMRC’s Online services

To file online using the Internet, don’t forget that you must first register and enrol with HMRC’s Online services. You can do this by going to our website Click on 'PAYE for Employers' under the 'do it online' menu. You can then send PAYE information online by either using:

  • Our free Online Return and Forms - PAYE product. This is designed for employers who have fewer than 50 employees and do not send large numbers of forms to us.
  • An 'off the shelf' commercial payroll software product that can send information over the Internet.
  • Your Employer CD-ROM. This is designed for employers who have nine or fewer employees at the end of the tax year. See below to find out more.

Or, if you prefer, you can use an agent or payroll bureau who can file online for you.

Penalties

If you do not file your Employer Annual Return (P35 and P14s) online, you may be charged a penalty up to a maximum of £3,000.

Exemptions

The new PAYE Regulations require most employers with fewer than 50 employees who send us an Employer Annual Return, to file their 2009-10 and subsequent Employer Annual Return (P35 and P14s) online. However, there are a few exceptions to this requirement and those employers are:

  1. employers who cease paying PAYE during the 2009-10 tax year providing that their Return reaches us by 5 April 2010
  2. employers who are authorised by HMRC to deduct tax in accordance with regulation 34 of the IT (PAYE) Regulations (that is domestic employers operating a simplified deduction scheme) and who have not received a tax-free incentive payment for filing online previously
  3. employers who are a practising member of a religious society or order whose beliefs are incompatible with the use of electronic communications
  4. 'care and support' employers – that is employers who employ someone to provide domestic or personal services at or from the employer’s home

To qualify as a 'care and support' employer:

  • those services must be provided to the employer or a member of the employer’s family
  • the recipient of those services must have a physical or mental disability, or be elderly or infirm
  • the employer must not have received a tax-free incentive payment in respect of the preceding last three tax years
  • and it must be the employer who sends the Return to HMRC (and not some other person on the employer’s behalf)

There is no specific claim form so employers in categories (c) or (d) should send a written claim to their HMRC office giving full details.

CD-ROM

Don’t forget that you can send us your 2009-10 Employer Annual Return online direct from your CD-ROM (see CD-ROM article ) provided that:

  • you have registered to use HMRC’s Online services
  • you have used the P11 Calculator on the 2009 CD-ROM to calculate pay and tax for all your employees
  • you were using the P11 Calculator for nine employees or fewer at 5 April 2010
  • you transfer your 2009-10 P11 details onto your 2010 CD-ROM which will be sent to you in February 2010

New for 2010-11

  • From 6 April 2010 if you meet these criteria you will also be able to send us your starter and leaver forms online. Look out for your CD-ROM next year.