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HMRC are reminding small employers that if they file their 2008/09 Employer Annual Return online, they will receive a tax-free payment.

Small employers (those with fewer than 50 employees) can still currently file their end of year returns on paper if they so wish. However, those who switch to online filing and file a valid online return will qualify for a £75 payment.

Mandatory online filing is already in place for large employers - employers with 50 or more employees must file their 2008/09 return online, or face a penalty.

To file online, employers must first register with HMRC's "PAYE Online for Employers" service. It can take up to a week to get the Activation PIN after registering, so employers should not leave it until the last minute.

Agents, tax advisers or payroll bureaux can also file on behalf of employers. And small employers will still qualify for the £75 tax-free payment, even if an intermediary files online for them.

Employer Annual Returns are due by 19 May, or late-filing penalties will apply.

HMRC's Sue Williams said:

"We are accepting returns now, and would urge all employers to send them in as soon as they are ready, to avoid any last-minute rush."

Support and advice is available from HMRC's Employers Helpline on 08457 143 143, online at http://www.hmrc.gov.uk/paye or from HMRC's Employer CD-ROM. There is also a free video podcast available to view or download from HMRC's podcast pages at http://www.hmrc.gov.uk/podcasts.