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P38A

P38A

I am tearing my hair out with HMRC (not for the first time). Trying to file employer annual returns online, several clients are one-man companies where the director was paid below the PAYE and NIC payment levels. So far I have discoverd that:

Nil P35s cannot be filed through the CD-ROM even though P11s have been kept during the year, as there will be no P14s

P38As cannot be filed  through the CD-ROM

P38As cannot currently be filed online through the HMRC website as there is a service issue

HMRC advice line has told me to visit www.hmrc.gov.uk/payinghmrc/paye-nil.htm and enter "nothing due" for the 2009-10 year. Problem is that the 2009-10 year doesn't appear in the dropdown menu...Am I correct in thinking that if I select the box 6 March 2010 - 5 April 2010 it will automatically apply to the full year?

After much trawling round the notoriously user unfrinendly HMRC site, I have found a form: https://online.hmrc.gov.uk/shortform/form/P35NilAgent which covers the P35 aspect - but why doesn't this refer to the possibility that a form P38A might be due? |It refers only to P11D(b)s

I would really appreciate advice from anyone with more experience. Should I:

1. Enter nil payment due for the year as per the above?

2. Submit the companies' details on the above P35Nil form (you can enter up to 8 clients at a time which saves l letter-writing to different tax offices)?

3. File the P38As online if/when the service issue is resolved - or should I just send them to the respective tax offices in case issue not resolved before 19 May?

I am going home now for a very large G&T but really looking forward to hearing from you!

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By Anonymous
20th Apr 2010 18:44

quite straight forward really......

1. Yes

2. No. If you have paid the directors 'correctly' (i.e. between the lower earnings limit and the earnings threshold) the p35 will not be a 'nil' return (even though there is no PAYE or NIC to pay over) as a p14 will be required.

3. if sole shareholder is the only director/employee then P38A is not due. You can't return the directors salary on the P38A or else his NI record will not get credited.

I would invest in Moneysoft Payroll Manager if I were you. Its worth the £100pa or so to avoid the hair pulling at this time of year. No problems then with using the CD ROM (which I don't think has ever been greatly successful) and you can file on-line straight from the program with literally a couple of clicks (so no hassle with the website either!)

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