Tax Free Incentive for Filing Online

I employed a number of part time workers last year to help during a busy period over Christmas, and now have an end of year form P35 to file. I understand employers were offered a tax free payment to file this online. Is this still available?

1st May 2009

HM Revenue & Customs require small firms, by this it means firms with less than 50 employees, to start using online filing for their end of year forms P35 by the 2009-10 tax year. These returns are must be filed by 19 May 2010. However, to encourage employers to familiarize themselves with the process they introduced tax free filing incentives commencing in the 2004/05 tax year.

Even if you haven’t submitted online before, you can still take advantage of the final tax free payment available of £75. If you register and file your PAYE end of year form P35 for the 2008/09 tax year, which is due by 19 May 2009, together with a valid P14, you will qualify for the payment. The form must also meet the HMRC quality standards, and you will need to use an approved piece of software to file the return.  

HMRC will confirm that you have been awarded the payment with a letter or an online notification. You can either elect to “self serve” the payment, and deduct it from your next PAYE payment, or apply for it to be paid via a cheque.

By Jo Nockels

Disclaimer: The information provided is based on current guidance (at date of publication) from HMRC and may be subject to change. Any advice shared here is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this information, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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