HMRC - 13.10.2010

Are you confused by online services?

Convenient to compulsory

Often, something that starts as an exception to the rule becomes the norm, and then before you know it, it’s compulsory. That’s pretty much the case with the Taxman’s online services. And while most individuals only have to worry about registering for self-assessment, as a director you’ll have a host of other online tax services you’ll need to keep tabs on. This can be frustrating when you’re up against a deadline and trying to log on to the Taxman’s website.

Which service

Online filing of virtually all company tax returns will soon be compulsory (see The next step), and there can be stiff penalties for not complying. So if you haven’t yet bitten the bullet, don’t delay any longer. And even if you’ve registered for one service, it won’t cover you for others. So you could soon end up with a list of user IDs and passwords as long as your arm; why is this?

Government Gateway

The registration process has two layers; the first is the Government Gateway (GG), which gives you access to virtually all government departments ranging from the Land Registry to HMRC. The second registration layer involves selecting the specific service you want to use, e.g. online VAT returns, Corporation Tax (CT), self-assessment etc. The trouble is, when you start the process it’s not clear that you only need to sign up for the GG once; you can then add - activate, as the Taxman calls it - other services to your GG registration. But what usually happens is that companies register for, say, PAYE, then find they need to file VAT returns online, etc. On each occasion they’re guided through the same registration process which results in multiple GG IDs and login details.

Tip 1. If you have an existing GG registration, you can use it to activate other government online services. It doesn’t matter that you originally registered for, say, VAT forms, all you need to do is log on and then go to “Your Services” and add the additional service you want, e.g. PAYE.

Trap. Allow yourself a few weeks to get online - each time you add a service to your GG registration it will have to be activated before you can get full use. The Taxman always sends the activation code by post, it takes a week to ten days to arrive, and you only have 28 days from the date of issue (not receipt) to go online and enter it; after that it expires and you’ll have to apply for another one.

Tip 2. Even if you’ve already registered several times and have a number of IDs and passwords, you can consolidate them into one to make your life a little simpler. Our step-by-step guide will show you how (see The next step).

Tip 3. You can even “deconsolidate” your registration. Say, for example, you’ve set up a new branch of your company which is responsible for its own PAYE etc. You could file returns for this using a single GG ID but it may be more convenient for the branch to have a stand alone registration. Our step-by-step guide also tells you how to do this and, if you haven’t yet done so, register for the first time.

For details of compulsory online filing deadlines (CD 12.02.07A) and for our step-by-step guide (CD 12.02.07B), visit http://companydirector.indicator.co.uk.