HMRC have advised employers with less than 50 employees who filed their end of year returns online for the year ended 5 April 2006 that they can deduct the £250 tax free compensation payment they are due from their next payment of PAYE.
These tax free compensation payments are due to employers with less than 50 employees who successfully filed their 2005/06 end of year forms P35 and P14 online.

Last year employers were advised to wait for HMRC confirmation that the £250 was due. Confirmation will be sent in the next few months to all employers who successfully filed online. These confirmation notices will all be sent via the internet.

For those employers who need the compensation repaying to them, for example, where they do not have a PAYE liability for the year, then they will need to wait for the online confirmation that the payment is due before being able to get it repaid by HMRC.

Internet link:

HMRC website