Inland Revenue incentive to SMEs to file online
The Inland Revenue is urging small businesses to 'do it online' and get up to £825 tax free if they send in their employer end of year tax returns electronically.
From May 2004, large employers must start paying tax and other deductions electronically. And they must start sending end of year returns (P14 and P35 data) online by May 2005. Employers who are medium-sized in 2006 must start online filing by May 2006.
Small employers do not have to start online filing until later. But those who start filing online early can get up to £825 tax-free from the Revenue over five years, starting with 2004-05 end of year returns.
The Inland Revenue is writing to 1.6 million employers to tell them whether they are a large employer (250 or more employees), a medium-sized employer (50-249 employees), or a small employer (fewer than 50).
Each letter from the Inland Revenue includes a copy of 'Do It Online: Your Guide to Filing PAYE Returns and Paying Electronically'.
It will explain:
- what the online filing deadlines are;
- how to get £825 for early online filing;
- the benefits of doing it online
- how to file online (it is reported that changes are currently being made to the Inland Revenue's online services to make it easier)
- how to pay electronically, and
- where to get help.