In this section:
- File your Employer Annual Return online: P14s and P35
- File your PAYE in-year forms online: P45, P46, etc
- Common errors to avoid when filing online
File your PAYE in-year forms online: P45, P46, etc
If you have 50 or more employees, then from 6 April 2009 you must send your in-year PAYE forms online to HM Revenue & Customs (HMRC). These are the employee starting and leaving forms, P45 and P46, and the new forms P46 (Pen) and P46 (Expat).
If you have fewer than 50 employees then, under government proposals, online filing of these forms isn't required until 2011. But it's a good idea to start earlier than that - online filing is easy, quick, convenient and secure.
This guide tells you what you need to know to start filing your in-year forms online. It explains the different online filing options you can use, and it keeps you up to date with any changes to the forms or procedures involved.
On this page:
- Important updates and changes
- Deadlines for starting to file online
- If you file using the wrong method
- Fewer than 50 employees – benefits of starting early
- What you need to get started
- Get your in-year filing right
- Two new in-year forms from April 2009
- New A4 version of form P45
- More useful links
Important updates and changes
50 or more employees? File online from 6 April
If you have 50 or more employees, you must now file your in-year forms
online.
Two new in-year forms are being introduced
HMRC introduced two new forms on 6 April 2009.
- Use form P46 (Expat) for certain new employees who have been seconded to work in the UK.
- Use form P46 (Pen) when you start to make pension payments to an employee for the first time. The online version of P46 (Pen) is identical to PENNOT, which it replaces. The paper-based P46 (Pen) replaces form P160.
The A5-sized form P45 has now been withdrawn
Only new A4 versions of form P45 are now valid. The new version of the
form contains two extra fields you must complete - for the employee's
date of birth and gender.
Latest information on technical issues affecting in-year online filing
Please follow the links below to check for any current service issues.
Check service availability for PAYE Online
Check whether any service issues are currently affecting PAYE Online
Deadlines for starting to file online
Which in-year forms must be filed online?
It is becoming compulsory for employers to file the following forms online.
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. (This form is being introduced on 6 April 2009. The online version was previously referred to as PENNOT.) |
P46 (Expat) |
For certain employees seconded to work in the UK - see the section 'Two new in-year forms from April 2009' for details. (This form is being introduced on 6 April 2009.) |
If you have 50 or more employees
You must file these in-year forms online from 6 April 2009. If you still file on paper when you should file online, you may have to pay a penalty.
If you have fewer than 50 employees
Under government proposals, employers with fewer than 50 employees will have to file these in-year forms online from 6 April 2011.
If you file using the wrong method
If you are supposed to file your PAYE in-year forms online, but send paper forms instead, you may be charged a penalty.
Fewer than 50 employees – benefits of starting early
The proposed 2011 deadline may seem some way off - but the sooner you start filing online, the sooner you'll see the benefits it brings.
It's quick, secure and convenient, and it cuts down on errors and the delays they can cause. So why not get ready and start early? If you start filing online before the 2011 deadline, you'll have plenty of time to learn how the process works and to get used to any new software or business processes.
A useful first step to take is to check that anyone involved in running your payroll will be ready for online filing. For example, if you have offices in different locations that issue their own forms P45 and P46, make sure that everyone:
- understands how to file online
- has the necessary equipment and software to file online
- knows that they'll have to file in-year forms online from 2011
What you need to get started
Registering for online filing
Before filing online, you'll need to register to use the 'PAYE Online for employers' service. You'll also need to activate the service before you start to file. This can take up to seven days, as you need to wait for an Activation Code (also known as an Activation PIN) to arrive in the post.
How to register for PAYE online filing
Online filing options
One you've registered with HMRC to file your PAYE forms online, you can file your in-year forms online using any of the following methods:
- Commercial payroll software: You enter the relevant details into your software package, which then files the necessary forms to HMRC.
- HMRC's free 'Online Return and Forms - PAYE' service: This service is available on the HMRC website, and is most suited for employers with small numbers of in-year forms to file.
- An agent or payroll bureau: The agent or bureau files online on your behalf.
- Electronic Data Interchange (EDI): EDI is generally suited for large employers only. It has a separate registration process and requires more complicated software and telecommunications links.
You're not restricted to using just one of these options - you can mix and match. For example, one of your branches might file online using commercial software, while another uses the free service on HMRC's website.
Is your software up to date?
If you use commercial software, you'll need to make sure it's capable of filing your forms online. You should also ensure that your software is kept up to date.
Please note that from April 2009 all payroll software must have the 'IR Mark' feature, which generates a confirmation receipt for the forms you file. If you're unsure about whether your software has this feature, check with your software provider.
Get your in-year filing right
If you use commercial software to file an in-year form online, HMRC's validation service will send your software an acknowledgement for successful submissions or an error message for those that fail. When a submission fails, you must correct the form and file it again.
If you use HMRC's 'Online Return and Forms - PAYE' service to file an in-year form, any errors will be highlighted for you to correct before you file the form.
You can find a list of the most common errors that cause submissions to fail in another guide - use the link below.
Common errors to avoid when filing online
Two new in-year forms from April 2009
Form P46 (Pen)
From 6 April 2009, form P46 (Pen) replaces the old form P160 and PENNOT electronic information. From that date, you must use the new form if you start to make pension payments to an employee for the first time. You should use form P46 (Pen) for all new pension payments.
- Don't use a standard form P46 instead.
- Use P46 (Pen) even if the person you'll be paying the pension has given you a form P45 Part 3.
Remember, if you have 50 or more employees you must file form P46 (Pen) online.
You can find out more about how to use form P46 (Pen) in the 2009 versions of HMRC's helpbooks 'Day-to-day payroll' (E13) and 'Employer Further Guide to PAYE and NICs' (CWG2). Both of these will be available for download from the PAYE forms and publications page from April 2009.
Form P46 (Expat)
The second new form to be introduced on 6 April 2009 is form P46 (Expat).
You must use this instead of a standard form P46 for the following categories of employee seconded to work in the UK:
- individuals working wholly or partly in the UK for a UK-resident employer on assignment while remaining employed by an overseas employer
- individuals assigned to work wholly or partly in the UK at a recognised branch of their overseas employer's business
- individuals included in an employer's dedicated expatriate PAYE scheme
- individuals included in an employer's expatriate modified PAYE scheme
Remember, if you have 50 or more employees you must file form P46 (Expat) online.
You can find out more about how to use form P46 (Expat) in the 2009 versions of HMRC's helpbooks 'Day-to-day payroll' (E13) and 'Employer Further Guide to PAYE and NICs' (CWG2). Both of these will be available for download from the PAYE forms and publications page from April 2009.
New A4 version of form P45
From 6 April 2009 you must use the new A4-sized version of form P45, rather than the old A5 version which will be withdrawn from that date. The new A4-sized form contains two new fields that must be completed from 6 April 2009 - for the employee's gender and date of birth.
Your payroll staff may not be familiar yet with the new A4-sized form P45. You can reassure them that other than the new size and the two new fields mentioned above, the form and the procedures relating to it remain exactly the same as before.
Printing parts 1A, 2 and 3 of form P45 after filing part 1 online
If you use HMRC's free 'Online Return and Forms - PAYE' service, then you can print Parts 1A, 2 and 3 of form P45 after filing Part 1 of the form (containing details of the employee leaving) online. You must do this using black ink on white A4 paper. This facility is also available in some commercial payroll software packages.
You can also order printer-ready versions of form P45 from the HMRC Employer Orderline. There are separate versions for use with:
- high-speed laser printers
- other laser and non-impact printers
- impact printers
Go to the HMRC Employer Orderline
Accepting old-format P45s from new employees
If you're not yet required to file your in-year forms online and, exceptionally, a new employee gives you an old A5-sized form P45 Part 3 from their previous employer, then you may still use it to let HMRC know that the employee has started work with you.
If you accept an old P45 in this way after 6 April 2009, you must complete the date of birth field. After that date, it's no longer an optional field.
More useful links
General guidance about employees starting and leaving
PAYE online filing - find out more
Use HMRC's PAYE Online demonstrator
Contact the HMRC Online Services Helpdesk
Check whether any service issues are currently affecting PAYE Online
