Since the majority of companies use some form of computer software to handle their bookkeeping, it's only sensible that there should be a way of actually filing the forms electronically too. And there is.
Software carrying the logo of the Inland Revenue Payroll Standard has been tested by the IR. It means that the package incorporates all the essential features for calculating tax, salaries, National Insurance contributions and so on.
Using a piece of software that carries this logo means that you will be able to file the relevant end-of-year tax details electronically rather than having to complete them all by hand. A list of accredited software products can be found at www.inlandrevenue.gov.uk
There's also a PAYE Internet service available. This has two benefits; it means you can submit PAYE forms and returns online and there's also a discount available for doing so. More information about this can be found at
www.inlandrevenue.gov.uk/menus/consult.htm or by calling 0845 60 55 999.
Doing your bookkeeping electronically makes sense if you have the necessary equipment, but be sure to make regular backups of all your accounts data. Preferably these backups should be kept off-site, so that if anything should happen to the originals (theft, fire, viruses, etc.), the backups won't be affected