The following matters have been highlighted in the latest issue of the Inland Revenue Notes for Software Developers.

• The date at which the "snapshot" of the number of employees in each PAYE scheme is taken in order to determine each employer's size category for 2005/06 will be the weekend of 23/24 October 2004.
  
  
• If their size category permits them to do so, employers may submit P14s by any combination of the four available methods, i.e. paper, Internet, EDI and magnetic media. If part submissions are filed using some of these methods and one of them is by paper, the paper P14s must be accompanied by a new P14 Cover Sheet. This form allows the employer to give the batch of paper P14s a Unique Identifier, in the same way that the electronic batches are also given identifiers. This ensures that all of the part submissions are given recognisable names by the employer.
  
  
• It has already been announced that the incentive payments for small employers making their returns online are not liable for income or corporation tax. The Revenue has now announced that the payments fall outside of the scope of VAT and do not have to be included on VAT returns.
  
  
• There will be two specific changes to form P35 for the 2005/06 tax year. The "NIC Holiday" box is removed as no further deductions are possible under the scheme. A new field is added, just before the "now payable" box, to allow the incentive payments made to small employers to be reconciled.
  
  
• The Internet version of form P38A Supplementary Return has, until now, been the only form on which the Inland Revenue allows the temporary NI number, i.e. starting with 'TN', to be entered. This exception has now been removed and the field should be left blank if the employee's permanent number is not known.

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...back to 23 July 2004


Sources:
www.ir.gov.uk/comp/notes-10-19-2.pdf