P35 online filing tax credit

P35 online filing tax credit

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After recent consultation with the Inland Revenue I was told that a company, with directors as employees only, that do not earn more than the Lower Earnings Limit and submit their P35 online will not become eligible for the £250 tax credit. Fair enough I assume...? Upon more recent consultations with the Inland Revenue I was told that all companies need to submit P14s for all directors whether they have drawn a wage or not. Therefore all will be eligible for the £250 tax credit even if the P14s have no financial entries. Does this therefore mean that all Limited companies get a free £250 for filing online?
Daniel Styles

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By stephenkendrew
01st Apr 2005 17:51

box 1a
Box 1a on the form P14 is the key to this. If an entry is required in box 1a (earnings at or above the lower earnings limit) for one employee then the employer will qualify for the £250.

If you therefore have one employee and pay them £78 each week for the whole year you will not qualify. On the other hand if you pay one person £80 for one week you will.

Then they wonder why people abuse the system!

Not all limited companies will, therefore qualify.

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