Small businesses could receive up to £825 from the taxman if they submit forms on-line, reports the Association of Chartered Certified Accountants.

The Inland Revenue has announ-ced plans to award small businesses cash rewards to submit PAYE forms P14 and P35 via the internet.

To qualify for incentive payments an employer will have fewer than 50 employees and file full and correct End of Year returns electronically and on time no later than January 31.

If this criteria is met, businesses will receive the following stepped incentive payments 2004/5 return - £250; 2005/6 - £250; 2006/7 - £150; 2007/8 - £100; 2008/9 - £75.

In 2009/10, online submission will become mandatory.

Richard Houghton, regional spokesman for ACCA said: "Busi-nesses should seriously consider taking up this incentive offer.

"Those unsure of what to do should contact the Inland Revenue."