If a PAYE scheme is still 'live' but no salaries have been paid in the year & no 'quasi payments' have been made, does a nil P35 need to be filed?
Especially if:
1. No Employer Notice appears to have been issued online for the client
2. No paper return appears to have been issued
Can we safely ignore?
Ronnie Stanley
Replies (7)
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P35s
We have for years had the procedure of checking by telephone with the local ofifce everything and file noting everything and taking names of the person we talk to. Notts and Derby Office are good at this and it works well. Never really have a problem.
Always make sure NIl returns are sorted and closed as appropriate.
Nil P35s - this always drives me mad
Hi
I deal with this issue every year, and it always sends me crazy, as there just doesn't seem to be a simple way of doing it.
The comment about putting a nil P14 on and submitting online is exactly what we do for a number of clients. It would be great if HMRC had some kind of other option, such as doing a simple P38A with a P35 to cover 'employees' paid less that £x, i.e. zero. With companies I can at least put a director on as an employee, and I'm literally doing that this afternoon for a couple of people.
I always thought there was a way you could phone HMRC to do NIL returns, but I can't seem to find a way to do it. The main tax line doesn't let you, and directs you to the Employer line, while the Employer line directs you to the regional office, and there the phone just rings. The 'sending it in with a letter' route we have tried in the past, but they did reject if it had no signature - so I'm avoiding that completely this year.
It's really frustrating that HMRC doesn't have the capacity to allow a NIL return online without us having to muck around with specific employees. I'd be interested to hear other people's attitude to this.
As for the incentive. it is correctly only due if you submit at least one P14 for a person who has gone above the LEL and actually has figures on there, but no PAYE liability is necessary.
Stephen
In the same boat
Last year we just wrote a letter to the tax office to function as a "nil" P35 and it seemed to work OK (eventually, in the odd case).
I note that you can force through an online P35 by entering a P14 with NI code letter X and then no pay on the form P35. Yet to see whether that will result in any come-back. Not expecting any online filing incentive, but just want to get it out of the way in the quickest manner possible, whilst at the same time cutting out the human (error) factor at HMRC.
I fought the law and .......
We have a number of "DIY" PAYE schemes for employees working in the UK who are employed by overseas companies. No P35s are needed for these. However, this did not stop HMRC actually paying a call to chase up for non submission. The clients were less than amused.
Now we always send P35s in. We did try claiming the incentive once, but were told "This type of scheme does not need a P35 so no incentive payment is due".
Online short form for nil end of year returns
Hope this helps...
https://online.hmrc.gov.uk/shortforms/form/P35NilEmployer?dept-name=&sub...
you can make the following declarations on the short formDeclaration
Please tick the checkbox below if the following statement applies to you.
I have no Employer Annual Return to make*
You must tick one of the checkboxes below.
Is a form P11D(b) due?