Tax free incentive for online filing

New legislation means that many small businesses are filing their end of year tax returns online, either directly or through an intermediary. Ceridian, the UK's leading HR and payroll provider, looks at this process.

When you have to start filing online depends on how many employees you have. For small employers (less than 50 employees) this isn't compulsory until 2010, but the Inland Revenue has introduced early start tax-free incentives of up to a total of £825.

To qualify for the first £250 payment, small employers need to have filed their 2005 return online. If you think you might be eligible to receive this payment, simply follow the process below to make your claim.

Delays

Some discussion has taken place on UKTECH about a lack of information from the Revenue for those who have already filed online. Ceridian advises that anyone who has filed online already should receive a letter in September. If you do not receive this confirmation, contact your local tax office.

If the Revenue confirms that you qualify for the incentive payment, follow the flow chart below (or click for PDF version).