PAYE update

Internet update – filing in-year forms online

From 6 April 2008, employers with 50 or more employees will have to send their employee starting and leaving details and some pension information to us online. And every employer – regardless of how many employees they have – will have to do the same from 2010.

As agents, you need to make sure you are ready to meet these obligations on behalf of your clients. We have updated our ‘inyear’ pages with all the latest information on filing in-year information online.

Changing the way HMRC deals with PAYE

The way that HMRC deals with PAYE is changing. We will be introducing improvements to help us operate the system more efficiently from April 2007. The changes are to our internal processes, but they will make it easier for everyone to do business with us.

From April 2007, we are introducing an automatic process to change tax codes during the tax year for benefits in kind that employers report on form P11D and P46(Car). This will speed up the rate that we process the information and update the current year tax code, in advance of settling the previous year's liability. Details of code changes will be notified by the normal process.

Employees will have more accurate tax deductions and employers will benefit from our more accurate and timely handling of benefits in kind information they have supplied, for example, a change in company car. These changes will mean that agents and employers will get fewer enquiries from employees about their tax.

From April 2007, we will also automatically bring together pay and tax information for an individual from forms P14 into a single total, irrespective of the number of jobs they have had during the year. This will enable us to more quickly check that the right amount of tax has been paid and reduce the number of enquiries we have to make.

There will be no change to National Insurance processing arrangements.

Issued 13 February 2007.