As part of this all employers will be required to file their end-of-year PAYE returns electronically, either directly or through an intermediary with financial incentives available to help small employers make this change.

A simple description is that it is sending information from one computer to another using an electronic link.

In this case it means you will have to send your end-of-year PAYE returns (forms P35/P14) using;

Internet service for PAYE (suitable for the vast majority of employers and agents)

Electronic data interchange (EDI) (suitable for large employers typically with thousands of employees)

An intermediary such as a payroll bureau or agent who will submit end-of-year returns on your behalf using one of the above services.

Which of the 3 employer groups are you likely to fall into? When do you have to start e-filing? What you need to do to qualify for incentive payments? If you use a payroll bureau/agent - are they ready to e-file your return? How this will affect you?

If you do not have payroll software, start considering the options now - do you;

outsource your payroll to 1st Choice Payroll and we will do the rest, or... buy your own computer and software accredited to the Inland Revenue “Payroll Standard”.

To encourage small employers (less than 50 employees) to transfer from paper to e-filing earlier than the required date the following incentives will be available.