Date of issue: 21st August 2003

Prepare now for Electronic Tax Returns

Management Link, a division of chartered accountants Clement Keys, Birmingham that supports growing businesses is alerting small and medium-sized enterprises that they need to start planning their electronic tax returns sooner rather than later.

"Electronic filing via the Internet is set to become mandatory for all businesses over the next few years, starting with companies with more than 250 employees next year. Although smaller SMEs have more time they can benefit from a cash reward if they submit their accounts electronically from 2004/05, "says Gavin Whitehouse, head of Management Link and a partner at Clement Keys.

"SME's who act now will receive a cash gift from The Inland Revenue and save money by outsourcing their payroll.

"Firms with up to 50 employees who file electronically in 2004/05 and 2005/06 will receive £250 for each year's returns. The amount paid by the Inland Revenue reduces to £150 for the 2006/07 tax year and then steps down to £100 and £75 for 2007/08 and 2008/09 respectively."

The Inland Revenue maintains that electronic filing via the Internet is a secure means of submitting year end returns and will not only cut down on the department's labour-intensive administration but will also speed up tax payments and refunds.

"Businesses should not miss this opportunity to outsource their payroll facility," says Gavin.

"An agent, such as Management Link which has a fully computerised payroll system and is authorised by BACS will mean that they would submit the necessary files and make BACS payments on the client company's behalf, saving them time and money."