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P35 2011/12

Hi

Please could some one tell me if I have to submit a P35 Employers Annual Return for 2011-12 if my clients business which paid only one employee (his wife) a salary of £5k during the tax year therefore there being no income tax or NIC deductions or do I tell HMRC a return is not due?

Many thanks

Jonny

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By Locutus
14th May 2012 19:58

Yes, you need to submit the P35, together with a P14 for the employee.

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What was their earnings period?

If they didn't earn up to the LEL in any earnings period in which they were paid (and that could be £5304 for a single annual payment, for example) AND the employee doesn't have another job elsewhere then there is no need to file P35/P14. Just file a nil one.

But if they earned over the LEL in any period then even if no PAYE/NI deductions applied there would still be a need to file P35/P14 (by internet)

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By DMGbus
15th May 2012 09:06

£5,200 pa = £433.33 per month = No P14 / P35 due (if P46 held)

If all the months are less than £442.00 (*) gross pay AND a P46 is held to say that this is the main job or no other job (and no pension received), then notify HMRC that no P35  due at the following link:-

https://online.hmrc.gov.uk/shortforms/form/P35NilEmployer?dept-name=&sub-dept-name=&location=1&origin=http://www.hmrc.gov.uk 

(*) ie. salary does not fluctuate so as to breach the £442.00 threshold in any one month 2011/12.

 

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By alattax
15th May 2012 09:27

Are you saying they don't have a scheme yet?

If not, there is no need to set one up as long as the pay is less than the limits quoted by the posters above.

If they have a scheme I would send P14 /P35 (with nil tax/nic) on the basis that as a family business if there are any questions about proper payment this will be additonal proof that things have been recorded correctly.   

 

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