If your business employs a large number of people, you may find it useful to use Electronic Data Interchange (EDI) to file to and receive returns from HM Revenue & Customs (HMRC). EDI is most suitable for businesses that employ thousands of people because it provides direct, secure connections to HMRC to transmit large amounts of payroll and expenses and benefits data.
This guide will show you when you can file using EDI, the software and connection hardware your business will need and how to get set up.
On this page:
EDI would be suitable for your business if you employ a large number of people - typically thousands or tens of thousands of employees - and your business needs to send and receive large amounts of payroll and expenses and benefits data to and from HMRC.
If you're a smaller employer with fewer staff, you should use HMRC's PAYE Online for employers in conjunction with commercial payroll software or HMRC’s Basic PAYE Tools.
Using HMRC's Online Service - PAYE for employers
Form |
Details |
|---|---|
P11D |
annual return for expenses payments and benefits |
P11D(b) |
annual return showing Class 1A National Insurance contributions for the year |
P46 (Car) |
when a car is provided for private use to an employee |
CIS300 |
Contractor's monthly return |
CISREQ |
a verification request for the Construction Industry Scheme |
EAS |
Employer Alignment Submission |
FPS |
Full Payment Submission |
EPS |
Employer Payment Summary |
EYU |
Earlier Year Update |
NVRREQ |
National Insurance number verification request |
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 response for the Construction Industry Scheme (CIS) |
NVREP |
National Insurance number verification replies and RTI (real time information) National Insurance number notices |
If your business wants to use EDI, you will need:
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.
PAYE Online for employers: EDI software and forms
You need to have one of the following four types of communications link:
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 needed. You can:
Download an EDI enquiry form (PDF 19K)
HMRC Online Services Helpdesk - contact details
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. You can get this in Appendix C of the EDI Step by Step Guide, which you can download by following the link below.
Registration Form 2 asks you to tell HMRC:
Download the EDI Step by Step Guide, containing EDI Registration Form 2 (PDF 168K)
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.
To receive 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. If you're using:
The test files HMRC uses will usually be blank. However, you can ask your OCST account manager to include dummy data, like code change details for example. This will allow you to check that the data is being transferred into your payroll software without problems.
Once you have successfully tested you should contact your OCST account manager to agree a go live date.
