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EDI (Electronic Data Interchange) is a way of transferring large amounts of information between two organisations using a dedicated connection or a secure network. This guide explains how EDI can be used for filing PAYE (Pay As You Earn) forms.
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Any employer with the necessary communication links installed can use EDI to send and receive their PAYE forms. In practice, however, EDI is most suitable for the largest of employers - those with staff numbers running into the thousands and/or with high levels of staff turnover. For smaller employers, filing over the Internet is likely to be a more cost-effective option.
| Form | Details |
|---|---|
| P11D | annual return for expenses payments and benefits |
| P11D(b) | annual return showing Class 1A National Insurance contributions for the year |
| P14 | end of year PAYE summary for each of your employees |
| P35 | employer annual return |
| P38A | employer supplementary return |
| P45 Part 1 | completed when an employee leaves your business |
| P45 Part 3 | completed when you take on a new employee (includes details of previous employment) |
| P46 | for new employee without a P45 from previous job |
| P46 (Car) | when a car is provided for private use to an employee |
| P46 (Expat) | completed to provide details of an employee seconded to work in the UK |
| PENNOT | completed when a new pension starts to be paid (communication routing name of the P46 (Pen)) |
| WNU | works number update |
| CIS300 | CIS monthly return |
| CISREQ | a verification request for the Construction Industry Scheme |
| Form | Details |
|---|---|
| P6 | notice of the tax code to use for an employee (issued on a daily basis) |
| P6B | notice of the tax code to use for an employee (issued on an annual basis) |
| P9 | notice of the tax code to use for an employee (issued on an annual basis) |
| SL1 | notice that you should start making student loan deductions |
| SL2 | notice that you should stop making student loan deductions |
| CISREP | a verification reply for the Construction Industry Scheme |
In order to use EDI, you must have EDI-compatible payroll software and one of three types of communications link.
Your payroll software must be able to output your PAYE data in either of the following formats:
If your software doesn't output in these formats you'll need to update it or purchase additional software to translate your output into an EDI format.
If you use your own in-house software, you'll need to check that the technical specifications of the messages it generates are compatible with HMRC’s Message Implementation Guidelines for EDI.
You need to have one of the following four types of communications link:
A list of quality-approved EDI software providers
PAYE Message Implementation Guidelines for EDI
There is a two-stage registration process and a testing phase to complete before you can start filing to HMRC using EDI.
There are three ways to provide HMRC with the information it requires. You can:
Find contact details for HMRC's Online Services Helpdesk
When HMRC has received your enquiry form, an account manager from the Online Customer Service Team (OCST) will contact you to help you set up your connection link.
Once the link is operational and ready for testing, you will have to send HMRC another form - EDI Registration Form 2. This can be found in Appendix C of the EDI Step by Step Guide, which you can download using the link below.
Among other things, Registration Form 2 asks you to tell HMRC:
HMRC will set up a test facility for you when it receives your Registration Form 2. The testing process involves checking that you can send and receive forms without problems using your EDI link.
For forms P14, P35, P6, P6b, P9, SL1 and SL2 you can go live once you have had one successful test.
For all other forms the number of successful tests required depends on the kind of payroll software you are using:
The test files HMRC uses will usually be blank. However, you can ask your OCST account manager to include dummy data such as code change details. This will allow you to check that the data is being transferred without problems into your payroll software.
Once you have successfully tested you should contact your OCST account manager to agree a go live date.
Download an EDI enquiry form (PDF 19K)
Download the EDI Step by Step Guide, containing EDI Registration Form 2 (PDF 267K)
A list of quality-approved EDI software providers
Frequently asked questions about EDI
