What Is Form 126?
Form 126 is the annual summary report that reconciles all monthly Form 102 submissions for the tax year. It provides a complete picture of total wages paid, taxes withheld, and National Insurance contributions for all employees. It must be submitted by April 30 of the following year.
Reconciliation
The total amounts in Form 126 must match the sum of all monthly Form 102 submissions. Discrepancies trigger ITA inquiries and may result in additional assessments. Common discrepancies arise from: year-end adjustments, retroactive salary changes, bonus payments, and corrections to prior months.
Required Details per Employee
- Full name and ID number
- Total gross income
- Taxable income
- Tax withheld
- NI contributions (employee and employer)
- Pension and training fund contributions
- Benefit-in-kind amounts
בסיס חוקי
- Section 166 – Annual reporting obligation
Important Note: The information on this website is for general informational purposes only and does not constitute professional tax advice. Consult a qualified tax advisor before making financial decisions.