HM Revenue & Customs (HMRC) are encouraging all UK employers to file PAYE records online. From 2010 it will be compulsory but in the meantime there are good incentives to file PAYE online. For the UK tax years 2004/05 and 2005/06 HMRC paid small employers £250 (fewer than 50 employees) to file their PAYE tax and records online. For 2006/07 the incentive is £150, for 2007/08 the incentive is £100 and for 2008/09 the incentive is £75.
If you already have PAYE software, check that it allows you to file online.
If you do not have software, or your software does not allow you to file online, talk with me as I can advise you on software that does allow you to file your P35 and P14s online at very affordable prices.
There are also a number of Internet based software suppliers that will look after all your forms and calculations electronically. No software, no manual calculations, just enter the numbers you need and print off the payslips leaving the supplier to keep the software up to date.