We encourage all employers to use our Online Services as they are a cost-effective, secure and environmentally friendly way of maintaining records and interacting with us. And employers with five, or more, employees are legally required to register for Online Services, and subsequently send notifications and employer annual returns via online services. An employer who fails to comply with the compulsory use of Online Tax Services will be considered to have committed an offence and is liable on summary conviction to a fine of up to £5,000.
For more information on the compulsory use of online tax services for employers see Practice Note 175/12
By enrolling for Online Tax Services for employers it is now possible for you, as an employer, or your agent, to do the following online:
- view a list of current and previous employees and tax codes for existing employees
- submit details of employees commencing or leaving their employment
- submit changes to an existing employee’s details
- make a payment of ITIP and NI (payments can be made by credit card or debit card, and you can notify us of a BACS credit transfer you make via your bank) or record nil remittances
- submit your monthly T35 remittance card
- submit your T37 annual return (including part year returns to cessation) with the ability to attach an end of year electronic payroll file if required. When attaching a file, validation checks will be carried out and any issues identified to the online user. Validation includes correct Income Tax and National Insurance numbers for each of the employees and there should be a valid employment link for all employees during the tax year that the file relates. If the file does not meet the validation required the issues will need to be address before the annual return can be submitted
- save and submit T14 and T9 (Benefit in Kind) details
- receive form T6L, which lists employee income tax codes, in your secure Online Services Message Box
- check your payment position for current and previous years
- check your Return position for current and previous years
Online services provide the user with greater flexibility and can save time and costs, with no need to send the monthly remittance card and other documents by post. Also, as payments are credited at the time they are made, it is possible to see the updated payment position in respect of current and previous years.