Tax-free payments for online returns

Small and medium-sized businesses can receive tax-free payments by filing their Employer's End of Year Tax Return (P14 and P35) online.

Employers who file the return before the May 19th deadline each year will be credited with £100 for their 2007-08 tax return and £75 for their 2008-09 tax return, according to HM Revenue and Customs (HMRC).

In order to secure the tax-free payments, a company must have fewer than 50 employees, use HMRC Quality Standard-approved payroll software and submit their tax return form online - with applications rejected if they are received by post or fax.

Payment from HMRC will take the form of a credit to the relevant Pay As You Earn payment form, or may also be claimed by cheque.

The new scheme provides an incentive for small and medium-sized companies to submit their tax return forms online, as currently only businesses with over 50 employees are required to do so.

From 2009-10 however, it will be compulsory for all companies to complete their tax return forms online.

For more Tax information please click here