In this section:
HM Revenue & Customs (HMRC) requires almost all employers to use PAYE Online. This service can be used to send and receive a wide variety of notices, forms and returns including filing:
• your Employer Annual Return (forms P35 and P14)
• some in-year PAYE forms, including employee starter and leaver information
(forms P45 and P46)
From 10 April 2012, changes have been made to PAYE Online for employers who are now reporting their payroll information using the PAYE Real Time Information (RTI) system. If HMRC hasn’t told you to use PAYE RTI you must not use these features even though they may be available to you.
HMRC will continue to use PAYE Online to send important notices and messages you need to correctly operate PAYE. You can read these notices and messages through PAYE Online and also set up email notifications so you know when there’s a new message or notice.
It may be more convenient for you to use the PAYE Desktop Viewer (PDV) to read some of the information sent to you by HMRC. Some certain payroll software may allow you to read messages and notices and submit certain returns too.
This guide explains how to get started with PAYE Online.
On this page:
The PAYE Online for employers service has changed to allow employers who are using HMRC's new 'PAYE in real time (RTI)' system to continue to use this service.
Only a small number of employers are affected and HMRC has notified those employers who are involved in the pilot. All employers not in the pilot should continue to use PAYE Online in the same way and ignore any new sections that refer to RTI.
The main new section - RTI messages - will only contain information if you are in the pilot.
You'll be able to continue to:
You can read more about the PAYE real time information pilot, there's a link at the end of this guide.
Almost all employers are required to file their Employer Annual Return (P35 and P14s) online, only a small number of employers are exempt from online filing. To check if you're exempt, follow the 'Guidance for exempt employers' link below.
File your Employer Annual Return: P35 and P14s
Guidance for employers exempt from online filing
Almost all employers are required to file the in-year forms shown in the table below online. If you file on paper instead of online, you may have to pay a penalty.
| Form | When to use |
|---|---|
| P45 Part 1 |
When an employee leaves your business |
| P45 Part 3 |
When a new employee starts |
| P46 | When a new employee starts, but has no P45 from their previous employer |
| P46 (Pen) |
For sending details of a new pension or annuity that you start to pay |
| P46 (Expat) |
For sending details of certain types of employees seconded to work in the UK |
File your PAYE in-year forms: P45, P46, etc
You can send many other PAYE forms and returns to HMRC online. To see a full list, follow the link below.
A full list of the PAYE forms you can send or receive online
There are a number of forms and returns that you can't file online to HMRC:
There are a number of PAYE online filing options you can choose from. You can use:
You are not restricted to using just one of these options. For example, when submitting your Employer Annual Return you could have an agent file your forms P14 at the end of the tax year but file form P35 yourself using HMRC's online service.
You can also use HMRC's P11 Calculator as part of the online filing process. Employers who have up to and including nine employees at the end of the tax year can use the P11 Calculator to file their Employer Annual Return (P35 and P14s) online. You can also use it to file your in-year forms (P45 and P46) online.
If you want to file online using either HMRC's free online service or commercial software (some of which is free) you will need to register with HMRC and activate your service within 28 days of receiving an Activation Code in the post. The steps involved in registration are explained in another of our guides (see the link 'Details of how to register for HMRC's PAYE online service' below).
There is a separate registration process if you plan to file PAYE forms using EDI. This is explained in another of our guides (see the link 'More about EDI filing for large employers' below). An important part of EDI registration involves making sure that you have the necessary software and communications links for the system to work.
If you want to file online using an agent or payroll bureau, then it will be up to the agent or bureau to ensure that they are registered with HMRC. Bear in mind, though, that you will still need to register with HMRC if you want to handle any of your other PAYE tasks online, such as receiving your tax coding notices.
How to enrol for PAYE Online if you're not able to use the online tax registration service
Go to the Online Services homepage to start the registration process
EDI filing for large employers
The main requirement for online filing is access to a computer with an internet connection. This applies whether you're using the free online filing service on the HMRC website or a commercial payroll software package. EDI filing has much more demanding technical requirements, which are outlined in a separate guide.
If you use HMRC's free online filing service, then you don't need any further software to file online. If you use commercial software you should check that it permits online filing and that you have the most up to date version of that software. You can use the link below to see a list of the commercial software (some of which are free) that HMRC has successfully tested.
Bear in mind that if you are using HMRC's free online filing service you must be connected to the internet continuously while filling in your forms and submitting them. Some commercial software is more flexible on this point, allowing you to fill in your forms while you're offline and then file them when you go online.
PAYE recognition for payroll software and online forms
Online Services: Payroll Standard and Pensioner Payroll Standard Accredited products and services
EDI filing for large employers - including technical requirements
Using PAYE Online is a fast, convenient and secure way of exchanging information with HMRC. It cuts down on time, administration and errors and it means that you'll get up-to-date PAYE information, such as updated employee tax codes much faster.
When using PAYE Online you must make sure you send HMRC the correct information about your employees. If you do you will save time by reducing the number of employee queries you get, as well as helping to make sure that your employees pay the correct tax and National Insurance contributions. Over 80 per cent of problems are caused because the wrong information is held about an employee's name, date of birth or National Insurance number.
For each employee you must always use their:
Wherever possible, check the information with a trusted official source such as a birth certificate or passport.
When you register and activate the PAYE Online service, HMRC will automatically make available your PAYE notices and reminders, such as P6 and P9 tax code notices, to you to view online. There are three ways of accessing these:
Once you have registered you will no longer receive your PAYE notices and reminders on paper unless you change your notice options. PAYE reminders online are mandatory while there is an online registration.
You can log on to the PAYE online service using your User ID and password and select one of the following options:
Each year in February/March, HMRC will issue P9 Tax codes and Student Loan notices which are applicable to the new tax year. The HMRC Data Provisioning Service (DPS) displays data in the tax year which they relate to and therefore when checking for the notices prior to 6 April it will be necessary to change the 'Tax Year' in order to view them.
HMRC recommends that you provide an email address, as the PAYE Online service will then notify you each time a notice or reminder has been sent to you.
The PDV is an application you can download from the HMRC website and install on your computer. It provides greater flexibility than viewing your PAYE notices and reminders on HMRC's website. The PDV is particularly suitable if you receive a lot of codes and notices during the year.
Using HMRC's PAYE Desktop Viewer
The notices and reminders HMRC sends you can contain important information that you'll need to operate PAYE correctly. So whether you view them on the HMRC website or using the PDV, it's important to check regularly to see whether any new ones have been sent to you. Remember, providing your email address will help to ensure that you don't miss any new notices or reminders.
You can ask HMRC to resume sending paper versions of most of your notices, but form P35N and all reminders relating to your Employer Annual Return will continue to be sent online.
Your Employer Annual Return must reach HMRC by 19 May after the tax year to which the return applies. You may be charged a penalty if your return is received later than this. Remember, almost all employers are required to file their Employer Annual Return online and if you don't do this you may also be charged a separate penalty.
As soon as HMRC receives your return online, it will be checked against the HMRC Quality Standard. You'll get a message - usually within a minute, but allow up to five - letting you know whether HMRC has accepted or rejected your return.
HMRC's free 'Online Return and Forms - PAYE' service, as well as many commercial software packages (some of which is free) are built around the Quality Standard, so in most cases any errors in your return will have been highlighted and corrected before you file.
In this case you don't need to complete an Employer Annual Return, but you must contact HMRC so that they can update your record accordingly. HMRC recommends that you do this online using a simple online form - follow the link below.
Notify HMRC online that you have no Employer Annual Return to make
When using the PAYE Online service, HMRC will automatically make available details of your employers annual return, payments and other information for example, interest and penalties. You will be able to see a summary of your PAYE position for 2010-11 and later years. For each tax year, you will be able to view a breakdown of the amounts shown in the summary.
Log in to HMRC Online Services
The information you file with HMRC using their Online Return and Forms service is retained within this system for three years, in line with normal PAYE record keeping rules.
Each year around October/November, HMRC upgrades this online service and at the same time deletes records that are no longer required. HMRC deletes all records that are:
If you wish to keep any of these records for your own purposes, you (or your agent) should check the records held on the HMRC Online Returns and Forms service and take the following action.
After the annual upgrade, you won't be able to use the online service to access any records which have been deleted in line with the criteria above.
You also won't be able to access the online service at all while it is being upgraded. You can find out more about the 'Service availability' by using the link at the end of this guide.
Real Time Information: an introduction for employers
Improving the operation of PAYE: Real Time Information (RTI)
Details of how to register for HMRC's PAYE online service
More about filing your Employer Annual Return online
File your PAYE in-year forms: P45, P46, etc
Avoiding and correcting errors in your Employer Annual Return: (P35 and P14s)
Common errors to avoid when filing forms P45 or P46
More about the Payroll Standard benchmark for commercial payroll software
