Using EDI to share PAYE payroll data with HMRC
For large employers sharing high volumes of payroll and Construction Industry Scheme (CIS) data using Electronic Data Interchange (EDI).
Why you might want to think about using EDI
If you’re an employer who has a lot of PAYE information to share with HM Revenue and Customs (HMRC), you can use EDI. It provides direct, secure connections to HMRC - allowing you to transmit large amounts of payroll and expenses and benefits data.
What you can use EDI for
You can send these PAYE forms to HMRC
| Form | Details |
|---|---|
| P11D | annual return for expenses payments and benefits |
| P11D(b) | annual return showing Class 1A National Insurance contributions for the year |
| P46 (Car) | when a car is provided for private use to an employee |
| CIS300 | Contractor’s monthly return |
| CISREQ | a verification request for the Construction Industry Scheme |
| EAS | Employer Alignment Submission |
| FPS | Full Payment Submission |
| EPS | Employer Payment Summary |
| EYU | Earlier Year Update |
| NVREQ | National Insurance number verification request |
HMRC can send these PAYE forms to you
| Form | Details |
|---|---|
| P6 | tax code to use for an employee |
| P6B | tax code to use for an employee |
| P9 | tax code to use for an employee |
| SL1 | start making student loan deductions |
| SL2 | stop making student loan deductions |
| CISREP | verification response for the Construction Industry Scheme (CIS) |
| NVREP | National Insurance number verification reply |
| GEN | generic notifications |
Software and connectivity you need to use EDI
To use EDI, you need:
- EDI-enabled payroll software
- the right type of communications links to connect with HMRC
Your payroll software must be able to output your PAYE data in one of the following formats:
- EDIFACT
- GFF (Generic Flat File)
HMRC can’t recommend one software product or service over another and isn’t responsible for any problems you have with software that you’ve bought.
If you use your own in-house software, you must check that the technical specifications of the messages it generates are compatible with HMRC’s Message Implementation Guidelines for EDI.
Communications links for EDI
You need to have one of these types of communications link:
-
AS2 (Applicability Statement 2) - AS2 is a specification describing how to transport EDI data over the internet using the HTTP or HTTPS protocols - it ensures that transmission of EDI traffic is secure, reliable and authenticated
-
ISDN (Integrated Services Digital Network) - to use ISDN you must also have Odette File Transfer Protocol software (using X25 protocols)
-
VAN (Value Added Network) - this is a secure third-party network service that you can use to transfer and store your data
-
X.400 - this is a non-internet type of email standard - HMRC supports messages using the Cable and Wireless (CW) X.400 ADMD (administration domain) on the CW mail service
Register for EDI and get started
Before you can start exchanging information with HMRC follow these 4 steps:
Step 1: to make an initial enquiry do one of the following:
- telephone HMRC’s Online Services Helpdesk
- download and complete an EDI enquiry form
Step 2: submit your registration form
When HMRC gets your enquiry form they’ll contact you to set up your communication link.
Once the link is ready for testing, you’ll tell HMRC using the form ‘Registration for Electronic Data Interchange’ - this form is Appendix B of the EB3 (PAYE) Step by Step Guide (PDF 135K).
Step 3: test if you can send and receive files
HMRC will set up a test facility for you - this involves checking that you can send and receive forms without problems using your EDI link.
You only need one successful test to start getting forms P6, P6B, P9, SL1 and SL2. For all other forms the number of successful tests you need depends on what payroll software you’re using. If you’re using:
- EDI software that HMRC recognises - one successful test is enough
- any other software - you must have 4 consecutive successful tests for each form
The test files HMRC uses will usually be blank. But you can ask to include dummy data, like code change details - so that you can check that the data is being transferred into your payroll software without problems.
Step 4: go live
Once you’ve successfully tested for all forms tell HMRC and agree a go live date.