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There's a wide range of PAYE (Pay As You Earn) notices, forms and returns that can be sent and received online. Note that almost all employers are required to file their Employer Annual Return (P35 and P14s) online at the end of the tax year, and it is gradually becoming compulsory for employers to file certain in-year PAYE forms online, including the employee starter and leaver information contained on forms P45 and P46.
Online filing is a fast, convenient and secure way of exchanging information with HM Revenue & Customs (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.
This guide tells you how to get started with PAYE Online for employers. It explains the different ways you can file online and how the free filing service on the HMRC website works. It also provides an overview of the steps involved in filing your Employer Annual Return online.
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Almost all employers are required to file their Employer Annual Return (P35 and P14s) online. The 2009-10 return must be filed by 19 May 2010.
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.
How to file your Employer Annual Return online
Guidance for exempt employers - filing your return on paper
If you have 50 or more employees, then you must 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.
If you have fewer than 50 employees, then you'll have to file these in-year forms online from 6 April 2011.
| 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 |
More about filing your in-year PAYE forms online
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 free P11 Calculator as part of the online filing process. Employers who have nine or fewer 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 (P45s and P46s) 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 link 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 link 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.
Details of how to register for the PAYE online service
Go to the Online Services homepage to start the registration process
More about 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 (some of which is free). 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 (some of which is free) 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 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.
List of payroll software packages HMRC has tested for online filing
List of software that meets HMRC's broader payroll standard
EDI filing for large employers - including technical requirements
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.
You can log on to the PAYE online service using your User ID and password and select one of the following options:
Student loan notices are displayed under the year they were issued, rather than the year they relate to. So if you’re checking for new student loan notices shortly after the start of a new tax year, you should check under the previous year too. HMRC issues a large number of student loan notices in March each year, so it’s very likely that you’ll find some of your notices listed under the previous year.
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.
How to download the PAYE Desktop Viewer (PDV)
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
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.
Details of how to register for the PAYE online service
More about filing your Employer Annual Return online
File your in-year PAYE forms online: P45, P46, etc
Avoiding and correcting errors in the Employer Annual Return
Common errors to avoid when filing forms P45 or P46 online
More about the Payroll Standard benchmark for commercial payroll software
