Payroll internet filing
Under current proposals it will be compulsory for all employers to file their end of year payroll returns over the internet by the 2009/10 tax year.
To encourage smaller employers (those with less than 50 employees) to increase their use of technology a package of incentives is proposed that will provide cash incentives totalling £825 over a five year period.
The proposed timetable for compulsory internet filing of payroll returns is as follows:
- Employers with 250 or more employees to be required to transact with the Inland Revenue electronically for the 2004/05 tax year.
- Employers with 50 or more employees, but fewer than 250, to be required to transact electronically for the 2005/06 tax year.
- Incentives to be paid to employers with fewer than 50 employees starting for 2004/05 at a level of £250 and tapering to £75 by 2008/09.
- Small employers to be required to file electronically for the 2009/10 tax year.
The proposed timetable for payment of incentives is as follows:
| Year of assessment | Filing deadline | Amount of incentive payment |
|---|---|---|
| 2004/05 | 19 May 2005 | £250 |
| 2005/06 | 19 May 2006 | £250 |
| 2006/07 | 19 May 2007 | £150 |
| 2007/08 | 19 May 2008 | £100 |
| 2008/09 | 19 May 2009 | £75 |
To qualify for the incentive payments, an employer is required to file the form P35 and forms P14 relating to all employees, accurately and by the filing deadline for the year.
