In this section
Receive up to £175 tax-free
Receive up to £175 tax-free
As part of the present Government's e-business strategy all UK employers will be required to file their Annual PAYE returns electronically with HMRC, either by EDI (Electronic Data Interchange) or by the Internet, by the tax year 2009/2010. In order to encourage small employers to file electronically HMRC introduced a series of incentive payments to all those who file early.
Q. I employ a PA, am I eligible for these incentive payments?
A. Yes. All those employing fewer than 50 people are eligible for tax free incentive payments of £175 over the next two tax years if they file their year end PAYE returns electronically.
Q. How do I go about filing electronically so that I can claim the £175?
A. When you subscribe to Enable Payrikk you don't have to do anything at all; providing you pay tax and NI on behalf of your PA we will automatically file your end-of-year return electronically, which entitles you to the incentive payments.
Q. What if my council or support service has funded my payroll service?
A. As you are classed as the employer, any incentive payment will automatically be returned to you. You will need to advise your Local Authority of your incentive payment when it arrives so that your direct payments account is not showing that it's in credit without a suitable explanation.
It is at the discretion of your Local Authority as to what they would like you to use this money for. Some like to use it to pay towards the renewal of their payroll subscription with Enable Payroll. If your Local Authority is unsure for any reason, please ask them to call us direct and we can assist with any queries.
Q. How and when do I get the money?
A. The next payment of £100 will be made available in 2008 and will receive a cheque for this amount.
Q. Why is HMRC giving away this money?
A. Because they recognise that they can make substantial savings themselves by receiving payroll data in electronic format, rather than receiving it in paper format and re-keying it. HMRC contacted us several years ago to work with them trailing their system and told us that the savings in labour they made on our client base alone exceeded one-man year!
Q. How did Enable Payroll end up working so closely with HMRC?
A. Enable Payroll, as part of Enable Ltd, act for over 10,000 employers in the UK, which represents just under 1% of the total number. The Revenue approached us because they could trial their systems over a lot of employers' payroll returns using just one company. It was a lot of work for us over a busy period, but it means that we are today the only payroll company in the UK that has already filed all our clients' year-end returns using HMRC's electronic filing system.
More about our' involvement with EDI can be found on the page 'Enable Ltd; EDI Case History' on HMRC web site.