Tax News

In a move that shines a light on the massive payouts being made to the ailing banks, HMRC have announced a cash giveaway to employers with less than 50 employees. The catch? You need to file the Employer's Annual Tax Return online. The benefit? You will get £75 tax-free. From April, any business with more than 50 employees is being forced under threat of penalty to file their return online. If you are a small employer, you can still use paper or online versions as you choose. If you go for the latter option, filing online, you will qualify for a £75 payment. Some haste is needed though, as the first time you use the system you need to pre-register and then wait for a PIN to come through. The return has to be submitted by 19 May. The Revenue's reasoning is clear. It's much more cost effective if everyone, business or individual, uses the internet filing. Bigger businesses can be forced into this, and individuals to an extent with changes to the Self Assessment regime. But they cannot do the same for small business. Especially in the current economic climate. So they are using the carrot instead of the stick.