Online Filing

1.31 Returns that must be filed online

Different types of Return can be made at the end of the tax year depending on the types of payment you make to your employees.

You must send us a Return if you are required to prepare a P11 Deductions Working Sheet (or equivalent record) for any employee during the tax year.

You must prepare a Deductions Working Sheet (or equivalent record) where, for any week or month, an employee:

  • gets pay equal to or greater than the NIC Lower Earnings Limit
  • receives pay and we have notified you of a code number or you are required to operate a code by the P45/P46 procedures detailed in Employer Helpbook Day-to-day payroll (E13).

Online filing only applies to the Employer's Annual Return for these types of payments to employees:

  • PAYE (subject to tax and/or National Insurance contributions)
  • payments subject to National Insurance contributions only
  • occupational pensions
  • Statutory Payments (Statutory Sick Pay, Statutory Maternity Pay, Statutory Paternity Pay, Statutory Adoption Pay) only
  • tips (or TRONC) only
  • PAYE-part only, where there is a combination of regular employees and subcontractors in Construction Industry Schemes.

Occasionally, an employee sends us his or her own P14 information under the direct payment arrangements. Returns made by employees do not have to be filed online and will not qualify for an early online filing payment.

1.32 Returns that do not have to be filed online

Some Returns do not have to be sent online. They are:

  • the Employer's Supplementary Return (P38A)
  • Returns of expenses and benefits (P9D and P11D)
  • Construction Industry Scheme Return of payments to subcontractors (CIS36)
  • Direct Collection and Payment
  • Electoral Payments Returns (P35(EP), P527 and P528)
  • Examination Payments Returns (P524 and P525)
  • Taxed Award Schemes Returns (P440 and P35(TAS))
  • Profit Sharing Schemes Returns (P35(PS))
  • Norwegian Protocol Returns (P35 Offshore Protocol).

You can send us P38As, P9Ds and P11Ds online if you want, but you will not get an online filing tax-free payment for doing so. You only get the tax-free payment if you are a small employer and file your Employer’s Annual Return (P35 and P14s) online.

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1.33 If you do not have to make a Return

Where you do not need to make a Return, you must tell us. You will have to write to us, or you can send us the blank P35 back saying no Return is needed. This would ensure we do not issue a penalty notice to you for not filing your Return. You cannot tell us online.

If, during the tax year, you have not filled in a Deduction Working Sheet (P11 or equivalent), you do not need to prepare a P14. If you have not filled in at least one P14, you do not have to send us a P35.

If you are a small employer, you will not qualify for an online filing tax-free payment if you make an unnecessary Return.

1.34 Sending in a P35 with no financial entries, but with P14s

Sometimes, you may have to fill in a P35 where you have nothing to report in the 'accounting' boxes, but you still have to send us P14s. For example, where all your employees are paid at or above the Lower Earnings Limit for National Insurance, but below the National Insurance Earnings Threshold. Another example is where all your employees are confirmed by us as resident abroad and working for a UK employer, and we have given them an 'NT' code.

If you are a small employer and you send us your P35 online with no financial entries but with P14s for 2004-05 and for later years up to 2008-09, you will qualify for the online filing tax-free payment.

Remember, if you are a small employer, you will not qualify for an online filing tax-free payment if you make an unnecessary Return.

1.35 Cessation Returns when you stop trading

If your business ceases, you (or your agent) can make your cessation Return online.

If you are a small employer, you will qualify for a tax-free payment if you file your cessation Return online and you will get your payment as soon as we have processed your Return. We will send you a letter telling you how to claim your tax-free payment.

We will not be processing 2005-06 or 2006-07 cessation Returns until after 30 June 2006.

If you wish to claim your repayment earlier, contact your Accounts Office as soon as you have received our acknowledgement that you have successfully filed your Return online.

After 6 April 2005, if you are a large or medium-sized employer, you must make your cessation Return online or you will face a penalty.

When you fill in an online cessation Return for 2005-06 and later years, you will be able to put the cessation date in a new box. Putting the date in the box is optional.

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1.36 Sending insolvency and similar Returns online from April 2005

If your scheme ceases or becomes insolvent, goes into liquidation, administration, receivership, voluntary arrangements or bankruptcy, you will be able to send your cessation Return online from April 2005. 2005-06 is the first tax year for which you can do this.

Your agent if you have one - including Insolvency Practitioners, and agents acting in liquidation, administration, receivership, bankruptcy or voluntary arrangement - can also file online for you.

But we will not be processing online insolvency or similar cessation Returns until after 30 June 2006.

If you are a small employer, you will qualify for a tax-free payment if you file your insolvency or similar cessation Return online. Your Insolvency Practitioner will need to check - either from your records or from us - that you are a small employer and so qualify for a tax-free payment. The payment will be credited to your payment record as soon as we have processed your cessation Return after 30 June 2006. We are sorry that you will have to wait until after then to claim your online filing tax-free payment.

Practitioners who want to file online will need to get an agent's password. To use the online service and get a password you need to go to Agents: registering for online filing.

An Insolvency Practitioner is not legally obliged to send us pre-appointment Returns, although they usually do if books and records are available. And if an Insolvency Practitioner takes on employees, or carries on taking them on, we will set up a new PAYE scheme with a new reference. This scheme will be treated as a new employer.