Large companies face e-filing deadline

The proposal is part of a range of measures recommended by Patrick Carter, a businessman and member of the government's public services productivity panel, and released as part of the government's pre-Budget report this afternoon.

Carter was appointed in June to review how payroll services among smaller businesses could be improved.

He recommended today that more use be made of IT to enable businesses to deal with complex payroll arrangements. As well as recommending large companies file electronically by 2004, he said smaller businesses should follow suit by 2007.

He also supported cash incentives for smaller employers to encourage electronic filing of end-of-year returns with the Revenue for a period of five years.

A Treasury statement said the government supported the recommendations 'in principle' but said it would consult on the proposals over the next two months.