Tax filing deadline by May 19

Small businesses have just a week left to file their Employer's Annual Return by the deadline of May 19 2006.

Employers with fewer than 50 employees do not have to file online, they get £250 tax-free from HMRC if they do so, and still qualify for the tax-free payment if an agent or bureau files online for them. While those employing 50 or more people must file their return online or face a penalty. This year HMRC's online returns service will be applying quality checks to all returns, and rejecting those with errors. HMRC says that the submitter will receive a message almost immediately after submission if their return is rejected, explaining why. If this happens, they must correct and resend the return without delay, no later than 19 May to avoid a penalty notice.

Don Macarthur, HMRC's Employer Programme Director said: "Filing online is secure and convenient. I would strongly encourage employers to check their returns for common errors. The most common mistake is not getting the Employer's PAYE Reference right.

"Employers should file as early as they can to leave extra time for any corrections, and they may find things a little smoother if they avoid peak times, especially 17-19 May, and office hours. Or, if their software lets them send the return overnight."

Employers required to file their return online must first register. Each year around 1.8 million employers throughout the UK are required to file an Employer's Annual Return. An Employer's Annual Return consists of a P35, together with a P14 for each employee.