Large employers, who already fall under the online filing regulations, who do not submit their employers end of year return electronically when they should do , could face a penalty of uo to £3,000.

The penalty will be based upon the number of P14's which should have been submitted with the employer's return and is in addition to the existing late filing penalty. For the 2004-05 return only, the revenue will base the penalty upon the number of staff employed on the 26th October 2003.

The government is trying to encourage smaller employers (less than 50 employees) to enrol for online filing now by offering financial incentives of £250 in the current year. At payscheme we have the facilities to provide online filing for our clients so enabling them to receive the £250 rebate which can contribute towards the costs of outsourcing their payroll.