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Servicetax leads the way with EDI

30 October 2003: As part of the present Government's e-organisation strategy all UK employers will be required to file their Employer's Annual PAYE returns electronically with the Inland Revenue, either by EDI (Electronic Data Interchange) or by the Internet, by the tax year 2009/2010.

Businesses with 250 or more employees have to file electronically by the end of this tax year - 2004/2005.

Businesses with between 50 and 249 employees have to file electronically by the end of the tax year 2006/2007.

Employers and businesses with less than 49 employees have to file electronically by the end of the tax year 2009/2010.

In order to encourage small employers to file electronically the Inland Revenue has introduced a series of incentive payments to be made available over the next five years to all those who file early. Starting next tax year and worth £250 per year in years one and two, then £150, £100 and £75 respectively over the next three years, the incentive payments are worth £825 in total. The first payment of £250 will be made during the summer of 2005, relating to the 2004/2005 tax year (which started in April).

Servicetax, as part of Enable, is the only payroll service provider in the UK to have already successfully filed thousands of our clients by EDI at the end of the tax year 2002/2003. Our electronic filing process is tried and tested.

EDI is currently a substantially faster and more secure electronic transmission system than the Internet, but the software costs and training involved are prohibitive to small employers - unless they outsource to a payroll service.

As the only EDI-enabled payroll service currently available in the UK, any small employer or organisation using our services will automatically qualify for the maximum £825 incentive payments over the next five years.

The first incentive payment of £250 available for the tax year 2004/2005 will more than cover the entire cost of a year's payroll service for your first three employees from Servicetax with the consequence that it makes good financial sense for all employers in the UK to outsource their payroll function to Servicetax.

More about Servicetax's involvement with EDI can be found on the page 'Enable Ltd; EDI Case History' on the Inland Revenue web site.