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PAYE44001 | Employer returns: electronic employer returns: introduction

From HM Revenue & Customs · PAYE Manual

Each employer and contractor must submit an annual return to HMRC. The return is a summary of

  • Tax and National Insurance deductions made from employees and subcontractors

  • Total payments of tax credits made to certain employees

  • Student Loan deductions made from employees who are Student Loan borrowers

There are different types of returns and some employers may submit more than one return of the same or different type in any tax year. From April 2005 returns for year 2004-05 can be submitted in parts when using online filing or Magnetic Media. If an employer intends to send the whole return by paper, then the return must be submitted as a Complete Return and not in parts.

This section covers work in Processing Offices associated with returns submitted electronically.

Return types

There are various methods an employer can use to submit returns that make up the EOY series. These are

  • Manually by sending a paper return

  • By magnetic media

  • Filing online using PAYE Online for Employers - Internet (formerly known as FBI) or PAYE Online for Employers - EDI (Electronic Data Interchange)

Note: From tax year 2004-05 every large employer and from 2005-06 every medium employer is required to file their return online either by EDI or Internet.

Electronic submission types

The employer can submit the following returns using electronic means either as a complete return or a return part

  • P35 - All P35 return types are processed as a P35

  • P14

Note: A CIS36, a contractor return including return type SC35, cannot be submitted using electronic means.

Submission in parts

For tax years 2004-05 onwards returns are classified in one of five ways

  • An Original Complete

  • An Original Part P35

  • An Additional Complete

  • An Additional Part P35

  • A Correction

Details of a captured return are sent, usually overnight from EBS and ECS.

External Routing Interface Component (ERIC)

Electronic return information submitted by both the EDI and the Internet is passed directly to ERIC before onward transmission to EBS and other systems.

Further information on ERIC, see PAYE41015.

Incentive payments

Small employers are offered incentives to file their complete return using online filing.