Study Zone

Online Filing

HMRC's Caroline Close explains why online filing of tax returns is the future.

In 2005, the government asked Patrick Carter (now Lord Carter of Coles) to review HMRC's online services to bring benefits to both government and customers. His goal was the universal online filing of tax returns from businesses and IT literate individuals by 2012. The government accepted his proposals and we are now well on the way to delivering this aim.
Whether you're an individual required to fill in a self assessment tax return, or an employer filing an end-of-year return, there are many advantages to using the online services: it's simple, convenient and straightforward; online forms are processed much faster than those sent on paper; calculations are worked out automatically as you complete the form, so you know what you owe or are owed straight away; and it can be done at any time, day or night.
If you're interrupted you can just save all your work, stop, and start again at a more convenient time. It's easy to monitor your account online and once you have filed, you automatically receive an online acknowledgement. In addition the process is secure, with everything automatically encrypted and protected.
How is it done?
You will need to register with HMRC and we will send you a unique user ID and Activation Personal Identity Number (PIN). All you need to do is visit www.hmrc.gov.uk, select the relevant link from the 'do it online' menu and follow instructions. It may take up to seven days for the PIN to arrive, so it's best to register as soon as possible.
We have worked hard at making the whole online experience as simple as possible. For example, we have produced a series of podcasts especially to help with online filing. They're packed full of useful information and show you exactly how it can be done. The podcasts are free from www.hmrc.gov.uk/podcasts.
Last year, almost 3.8 million self-assessment returns were filed online and, impressively, during last year's filing peak the service was processing more than 6,000 returns each hour. And earlier this year, over 80% of all employers filed their end-of-year returns online – an increase of 10% from the previous year.
Employers can also send us their
in-year starter and leaver forms (P45, P46 and similar pension information) online, but from 6 April 2009 this will be compulsory for all employers with 50 or more employees.
We are aiming to make it even easier to access and use online services by introducing a 'single sign on', whereby customers who require several different services will be able to access these through one online account. So if you are already online, watch out for improvements across a number of areas in the very near future.

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