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Is a P35 required?

Is a P35 required?

I have a self-employed client who has no employees but has paid subcontractors and paid the tax deducted correctly to HMRC. The client has also had cis tax deducted from payments they have received.

Is a P35 necessary as the CIS has been correctly accounted for on monthly returns. The CIS suffered can be claimed against tax due on the tax return (self employed).

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18th May 2012 13:13

No

If there are no employees, there is no requirement for a P35.

The question becomes should you notify that no P35 is due because HMRC is expecting one and will automatically issue penalties if one is not received.  That probably depends on the PAYE scheme type.  If it is an XP scheme, they will presumably not expect a P35, but if it is a PSC scheme, they probably will.

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