Doing it Online
2.1 How to file online
You can choose how to do your online filing. The options are:
- an intermediary, like an agent or payroll bureau, who can file online on your behalf, or
- our secure PAYE Online for Employers service which lets you file online
using:
- a payroll software product - including our free HM Revenue and Customs Online Return and Forms - PAYE product - that can send your end of year Return securely over the Internet
- Electronic Data Interchange, which sends information to us over a secure phone line.
2.2 Online filing at a glance
To get the tax-free payment we will need both parts of your Return (P35 and P14s) online. So if your agent is sending only part of the Return, for example you send your P35 and your agent sends the P14s, make sure you register for our online services to send your part of the Return online.
2.3 Electronic Data Interchange users
If you use Electronic Data Interchange at the moment, always talk to your Account Manager at our Information Management Solutions before registering for our PAYE Online for Employers - Internet service.
2.4 Magnetic media
Online filing does not include magnetic media (CD-ROMs, disks and cartridges).
2.5 Using an agent or payroll bureau
An intermediary, like an agent or a payroll bureau, can help you run your payroll and may be able to file online for you.
If you use an agent or payroll bureau, you are still responsible for making sure that your Employer's Annual Return is filed online, on time, and that it is accurate.
If you are a small employer and an agent or payroll bureau files online for you, you will still qualify for a tax-free payment for early online filing. Remember that you will not qualify for an online filing tax-free payment if an agent makes an unnecessary Return on your behalf.
Talk to your agent or payroll bureau to agree who will file what online and when. Where an agent or payroll bureau files online for you, get your agent or payroll bureau to check the Return with you first, because it is your responsibility to make sure that your Return is accurate.
You will need to agree with your agent or payroll bureau who is keeping your archive records.
2.6 Using PAYE Online for Employers ' Internet
If you have fewer than 50 employees, you can file online over the Internet using our free HM Revenue & Customs Online Returns and Forms - PAYE product or other payroll software.
You will need to make sure that the computer software you use to file online can send your information electronically and that, from April 2005, it meets our Quality Standard.
To use the Internet, you must first register, and activate our PAYE Online for Employers - Internet service before you can send us anything online. When you register, you will need to enter in full, your Accounts Office reference number which you will find on your payslip booklet (P30b). You will also need your PAYE reference. If you get an error message, try again and leave out the zeros after the two letters.
You cannot do all of this on the same day. So register and activate in good time to get your Return in by your online filing deadline.
If you are already registered online for VAT and VAT Registration, all you need to do to register for PAYE Online is log on with your existing User ID and Password, select 'PAYE' and enter your details.
Registering for PAYE Online for Employers - Internet will affect the way important information, like code numbers, are sent to you. If you have a registered agent, he or she - as well as you - will be able to view your PAYE notices and reminders online.
2.7 Accessing PAYE Online for Employers - Internet
Go to HMRC Home Page and then to 'PAYE for employers' from the 'do it online' menu. Or you can go to the Business Link website and select 'Tax and Payroll'.
2.8 Registering for PAYE Online for Employers - Internet
Go to HMRC Home Page and then to 'PAYE for employers' from the 'do it online' menu. Or you can go to the Business Link website and select 'Tax and Payroll'.
Select 'Register' from the 'I am a new user' box. Select whether you wish to register as an Organisation or Agent and the select 'Next'. Choose 'PAYE Online for Employers' and select 'Next'. You will need your PAYE reference number and your Accounts Office reference. Details on where to find these are on the 'What you will need for registration' screen.
When you select 'Next' you will be taken through five steps to registration. These will be clearly displayed on top of each page as you go through the registration process. Select 'Next' to begin registration.
Step 1 - About you
Enter your full name and e-mail address
The e-mail address is optional. But if you do not give us your e-mail address, we will not be able to send you alerts when you have new notices or reminders, or confirmation of any submissions you make.
Step 2 - Create Password
You will need to choose a password that you can remember as you will need
this every time you log in. The password cannot include the word 'password'!
Step 3 - Enter details
Enter your Employer PAYE and Accounts Office reference number. (These are
on your P30B paying-in book or your annual electronic reminder.)
Step 4 - Accept terms and conditions
You will then see our terms and conditions. You must accept the terms
and conditions to continue with the registration process.
Step 5 - Note user ID
This screen will give you a 'User ID'. You must keep a note of this number
and use it every time you next use our online services. You will receive two
letters from the Government Gateway within seven days of registering. One
letter will contain your user ID on a handy card. Keep this safe. The other
letter will contain your activation PIN which you will need to 'activate'
the service.
You must activate the service within 28 days of the date on the Activation PIN letter or you will have to register again.
Activate from HMRC Home Page by selecting 'PAYE for Employers' from the 'do it online' menu. Enter your User ID and password.
If it is the first time you have logged on since registration, you will be asked to put in your Activation PIN. Do not leave registration until the last minute (for example, just before your online filing deadline). You need to make sure that you have registered and activated your service well before trying to file your Employer's Annual Return online. Once you have activated the service you will be sent all notices and reminders over the Internet. If you want to carry on receiving them on paper or by Electronic Data Interchange you must click on 'want to change' from the activation screen.
2.9 Online filing using our free Online Return and Forms ' PAYE
If you are a small employer, and you do not already use payroll software, one way to file online is to use our free Online Return and Forms - PAYE product.
If you use a bureau or an agent to file some of your P14s and therefore send your Return to us in parts, you will be able to use our free Online Return and Forms - PAYE product to send in your P35. Check with your bureau if they offer a P35 service. It might be easier to get them to send in all the parts of the Return for you.
You can also use the service to send in amendments that may be needed to a Return that you have already filed. You do not have to have sent in the original Return using Online Return and Forms - PAYE.
To use Online Return and Forms - PAYE you must first register for the Internet service. (See 'Registering for PAYE Online for Employers'.)
The Online Return and Forms - PAYE service has a database that you can use to build up personal information for all your employees (for example, things like address and National Insurance number). These details will then be transferred automatically on any online form that you send us for your employee (like a P45(1)). You do not need to build up a database if you are only using Online Return and Forms - PAYE to send your form P35.
At the end of the tax year, you can use these personal details to complete your P14s, along with the tax and National Insurance information from your other records. You can produce a P35 from all the completed P14s.
Online Return and Forms - PAYE does not calculate pay and tax. But you can use the electronic calculators on your Employer CD-ROM 2006 to help you work out things like tax, National Insurance, student loans and Statutory Payments, and fill in forms, including the P11D (Return of expenses and benefits). The Employer CD-ROM is packed with everything you need to help you do your payroll, including teach-yourself sections, and guidance - including this Handbook!
If you choose to use Online Return and Forms - PAYE, we will store the data you have entered for seven years, so that you can easily see all previous years' personal and P35 information. And you will be able to print all of this out if you want to.
If you are using Online Returns and Forms ' PAYE and take on the same employee more than once during the same tax-year, you must add the employee to your list for each separate period of employment. Also include their 'start' and 'leaving' dates on the Employee Detail screen to show each period of employment during the tax year. They will appear more than once on the employee list and you will send more than one P14 for them, each P14 should cover the separate periods of employment.
We will send you an e-mail acknowledgment for every submission you make using Online Return and forms ' PAYE during the tax year (for example, whenever you send us a form P45(1) when an employee leaves you, or a form P46 for a new employee).
2.10 PAYE Online for Employers: Electronic Data Interchange
Electronic Data Interchange is a way of filing large amounts of information online using a private, secure phone line.
It is best suited to large employers with tens of thousands of employees, or employers who have a high turnover of employees.
You must register with our Information Management Solutions before you can use Electronic Data Interchange. Before you can start using Electronic Data Interchange we need to test that you can send and receive information in this way. This can take time, so get in touch with us early on.
You can register by sending an enquiry form to:
- e-mail - helpdesk@ir-efile.gov.uk
- fax - 01274 534514
- post - Information Management Solutions
Business Services
Crown House
Victoria Street
Shipley
West Yorkshire
BD17 7TW.
You can download the enquiry form (RTF 30K) or phone our Online Services Helpdesk on 0845 6 055 999 to get one.
Follow the link for more information about using Electronic Data Interchange.
2.11 HM Revenue & Customs Payroll Standard
We have developed the HM Revenue and Customs Payroll Standard to help you find out which payroll software products have all the essential features that you need to work out PAYE, National Insurance contributions, Statutory Payments and do lots of other payroll jobs.
Payroll software developers can have their products tested against our Payroll Standard. We let successful products display the Payroll Standard Accreditation logo.
Software that sports our logo will let you file your Employer's Annual Return online. The logo will either be on the software product, or your software supplier will be able to tell you which products meet our Payroll Standard. All accredited software is tested against the relevant sections of the Quality Standard.
Follow the link for a list of accredited products that meet our Payroll Standard. Or call our Payroll Standard Helpline on 0845 9 159 146.
Payroll Standard accredited software will help you run your day-to-day payroll more accurately.
We update the Payroll Standard from time to time so it keeps up with changes in the law.
