The cash incentive scheme for employers’ annual tax returns is set to continue. Although you do not have to start online filing until 2009-10, businesses with fewer than 50 employees may be eligible for £150 tax-free, if they submit their Employer’s Annual Return online. Employers – or their payroll agent – must submit their Employers’ Annual Return (P35) with an End of Year Summary (P14) for every employee by 19 May 2007, or face a penalty.
They have to tell HMRC if they have employed anyone between April 2006 and April 2007, who they are and how much was deducted in tax, National Insurance and Student Loan repayments from their pay during the year.
‘Online filing is secure, convenient and quick,’ says HMRC, ‘and a test service is available so employers can check their online return before submitting it.’
The tax-free payments are set to continue, with £100 offered for online filing in 2007-08 and £75 in 2006-07.
The amount will be credited to your payment record after you successfully file your return online and you can offset it against future payments, however, you will not qualify if any part of your end of year return is sent on paper.