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Online PAYE filing
With the deadline for the submission of end of year PAYE returns rapidly approaching and with the Revenue offering a financial incentive, those responsible for payroll matters may be thinking of registering for online filing via the HM Revenue and Customs website (www.hmrc.gov.uk). We understand that there are a couple of common problems occurring where businesses have been unable to register on the website.
First, some have forgotten that they have already registered or perhaps the person who registered has left without noting this. In such cases, the Online Services Helpdesk should be contacted on 0845 6055 999. A new user identification code can be issued and the user will then have to request a password via the website.
Secondly, there may be a problem with recognition of the Inland Revenue Accounts Office reference — for example 123 PN 123456. This seems to be associated with the presence, or otherwise, of zeros between the letters (PN in the above example) and the numbers following them. Again, if registration fails, users should contact the helpdesk for advice.
Users are advised to keep their user IDs and passwords in a safe and secure place to avoid delays in having to have a new ID issued and then applying again for a password.
The Revenue says that it expects a big rush of return submissions in the lead up to 19 May and reiterates its request that users:
- file outside peak times (before 10am or after 4pm);
- if possible, file at weekends; and
- do not leave things to the last minute.
MG Rover
HMRC has outlined its policy and approach to dealing with debt management issues, with particular reference to the administration of MG Rover. Within the legislation and its duty of care and management HMRC says that it will respond constructively and speedily to requests from businesses affected by debt issues.
Businesses can approach the debt management office that they normally deal with, and in the particular case of MG Rover businesses can contact a special helpline, 01604 731 678, set up in Northampton which will co-ordinate all queries and requests for both direct and indirect tax debts. Businesses can arrange for an appointment to discuss their debts at the Broadway office in Birmingham by calling 0121 697 4159.
Both of these facilities will operate for a finite period and after that enquiries should be made to the normal debt management office. Notice of cessation of these facilities will be posted on the HMRC website.
Time to pay arrangements are looked at on a individual basis, and factors that will be taken into consideration include the level of all debts, the cash flows of the applying business and its continuing viability. Where there has been a collapse of a key trading partner, HMRC will work to develop an integrated response to the debts in respect of the various taxes. Any appeals against VAT default surcharges will be considered against the particular circumstances of the case.
Where VAT has already been accounted for on an invoice which a business thinks is unlikely to be paid then the bad debt relief rules apply. These rules apply to debts that are more than six months old and require the relevant VAT returns to have been made and paid.
www.hmrc.gov.uk
Form 42 guidance
The Revenue has amended its form 42 guidance:
- The address to which form 42 is to be returned is 100 Parliament Street, not 1 Parliament Street.
- Under 'newly incorporated companies', the final paragraph concerning pre-emption rights has been deleted.
- Notes and definitions: The answer under Example 13 has been revised.
Commenting on these latest Revenue changes, Ken Moody (see 'A learning curve', Taxation, 5 May, page 129) says that they make filling in the forms 'unclear'. He would 'still advise practitioners to complete the unrestricted sections unless personal restrictions were involved'.
www.hmrc.gov.uk
Electronic filing
The following is taken from the Employers' Bulletin 20, to which readers are referred for full details.
Using magnetic media, such as tape, CD-Rom, disk or cartridge, to send forms P14s is not online filing.
Electronic payments need to arrive by the 22nd of the month and the Revenue must have cleared funds no later than that day. If the 22nd is a non-bank working day the cleared funds need to be with the Revenue by the previous bank working day.
Banks vary in the length of time it takes them to process electronic payments, so employers should check with their own bank as to the cut-off date and time for getting the payment to the Revenue by the due date.
The Revenue has made it simpler to pay by BACS (including Internet and telephone banking). From May 2005, employers can make their normal monthly or quarterly payment of tax and National Insurance in a single amount. The accounts office reference, in the format 123PA00012345, should be used when making a combined payment. Words, characters or spaces should not be added to the 13-character reference as this may delay the payment being credited to the employer's account. Employers already making separate tax and National Insurance payments can continue to do so as now if they wish.
For employers who do not have payroll software, the Revenue's free 'Online Return & Forms — PAYE' product can be used once they have registered for PAYE Online for Employers. This is suitable for employers with fewer than 50 employees. Personal information for all employees, such as address, date of birth and National Insurance number can be saved. These details are then transferred automatically to the online form sent to the Revenue for the employee.
When the return is sent online, the Revenue's computer will do some quality checks immediately. The rest will be done later. If the Revenue has to contact the employer about his return, to put right any problems and resubmit it, the employer will still be entitled to the tax-free payment for filing online and the Revenue will not send a late filing penalty if the original return was filed by 19 May.
Employers Bulletin 20 — April 2005
