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
Replies (4)
Please login or register to join the discussion.
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)
£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:-
(*) ie. salary does not fluctuate so as to breach the £442.00 threshold in any one month 2011/12.
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.