PAYE Online Services – Update

We have previously told you that in October 2008 we planned to make some changes to PAYE processing and transfer employee records from our existing 12 PAYE databases onto one database.

We have now decided that we will not go ahead with these changes in October. This deferral will have no impact on employers and they should continue to operate PAYE as they do now.

Changes that are going ahead

Sending in-year forms online

If you have 50 or more employees you will have to send your P45s and P46s and similar pension information online from 6 April 2009. Under Government proposals employers with fewer than 50 employees will have to send these forms online from 6 April 2011.

Upgrading our Online Return and Forms – PAYE service

There is a planned upgrade to our Online Return and Forms – PAYE service in October 2008.

If you use payroll software, Electronic Data Interchange, or paper, you will be able to carry on sending us these forms as usual.

New stationery

New A4 versions of form P45 will be introduced in October and you will be able to print these off on A4 plain paper, rather than using the HMRC pre-printed stationery, if you wish to do so. You can use them alongside the current versions until these are withdrawn on 5 April 2009. The A4 versions contain two extra fields for Date of Birth and Gender which must be completed from 6 April 2009.

We will also still be introducing the P46 (Pen) for new pensioners in April 2009 and the new P46 (ExPat).

Withdrawal of P6/P9 information by paper list

After September 2008, we will no longer be issuing bulk P6/P9 tax code changes on paper lists. If you currently get paper lists, we will let you know how this affects you when we send you your next (and final) lists.

Coding Notifications by Magnetic Media

Also from April 2009, we will not be sending P6 and P9 coding updates by Magnetic Media. In September, we will be writing to all employers (or their agents) affected by this.