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END of YEAR Electronic Online Filing Procedure for PAYE
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DEADLINE
19th May 2007
IMPORTANT --------------------------------------------------------------------------------------------------------------------------------------------
To use the End of Year Filing service you MUST have a User ID and Password to access the Government Gateway AND you must use those to enrol in the Employers PAYE Online service
If you have not done this already then click here to go to the Application process.  (Remember, you must have registered as an ORGANISATION.  If you have previously registered as an Individual, for example to file your personal tax return, then you need to register again as an Organisation).  Once you have registered the HMRC will send you an activation code through the post.  You must use this activation code within 28 days or you will have to start the registration process again.
Registration to use the Government Gateway can take 7 - 14 days to complete so do not delay
Who MUST file online Benefits of online filing
Companies with 50 or more employees MUST file online this year.

Companies with 49 or less must file online by 2010 however there are large incentives available from HMRC to start earlier

Companies will be contacted by HMRC by letter before 30th December, 2005, informing them of the number of employees on record with HMRC and therefore which category your company falls into.

 Companies with 49 or less employees will benefit from these incentives if they file online:-
  • 2005 / 6 (successfully filed by 19th May 2006) - £250
  • 2006 / 7 (successfully filed by 19th May 2007) - £150
  • 2007 / 8 (successfully filed by 19th May 2008) - £100
  • 2008 / 9 (successfully filed by 19th May 2009) - £75

HMRC recommend that you claim your rebate to credit against your payments to HMRC .The incentive is available by cheque but may take several weeks to process.

Remember: Most employers have a single PAYE scheme and unique employee reference number.  If you have more than one then you must make a separate filing for each one

How to use MyPAYE for electronic End of Year filing.
1) If you are a user of MyPAYE you can select the End of Year online filing option on the main menu after you have completed the last payroll for this year.

Note:  After you have made your electronic submission you will not be able to rerun or roll back any of this year's payrolls.
  2) If you wish to use the MyPAYE online filing service for this year's data, but have not yet entered any company, employee or payroll information for any of this pay year then you will need to enter your basic company data, the essential fields about your employees and their whole year pay and deduction figures on the 'Year To Date' pages.
  3) To file your data electronically.   Select the 'Year End' function on your MyPAYE Home page main menu.
  • You will be asked whether you want to do a test transmission or a live transmission. 
  • 'Test' allows you to ensure that your username and password for the Government Gateway are correct but HMRC will not use the data sent to them for tax calculations. 
  • Selecting 'Live' will submit your data to HMRC for their processing (You cannot do this before 06/04/2007).
  • Complete the form and declaration presented to you - an example of the form is available here
  • You will be asked to confirm the payments already made to HMRC.  You should amend the figures presented as the actual amounts you paid may be different from those calculated by the system.
  • Finally you will need to answer a few questions about funding received from HMRC, CIS payments and last year's rebate.
  4) MyPAYE will then build the file for your submission.  It is possible that this may reveal inconsistencies in your data that will not be acceptable to the HMRC.  If this is the case then any errors will be displayed and the process will stop.  You must make any necessary corrections before trying again

5) If the file build completes without error MyPAYE will open a channel to the Government Gateway and send your data automatically.  You will be informed if any errors occur during this procedure and what you will need to do to correct them.

If you selected Live transmission you will receive an email from HMRC to confirm that they have received your data.  This email will be sent to the email address that you gave to HMRC when you registered for access to the Government Gateway.

6) If the data was accepted by HMRC and you selected Live transmission, then you can print your P60's.

7) Finally, MyPAYE will update your payrolls ready for the 2007 / 8 Tax Year.  This includes updating the Tax Codes as per HMRC instructions.
 

Common Mistakes made when filing online:

The HMRC have published two documents that give information about the common faults made by employers filing online last year. Whilst the validation in MyPAYE should prevent most of these errors, the documents are obtainable here :-

http://www.hmrc.gov.uk/bulletins/tb80.htm#emp_returns

and

  http://www.hmrc.gov.uk/employers/empbull22.pdf
 

DATES to AVOID

Your filing must be completed by May 19th, but you cannot run any payrolls for the 2007/2008 tax year until you have completed your filing. Also there are more companies filing online this year compared to last year and there are only 29 days available.  In addition HMRC recommends that the following dates should be avoided when filing:-

6th and 7th of April

18th and 19th of May