For some companies, the advent of Real Time Information over the next 12-18 months means this week will see the final performance of the annual P35 ritual where P35 returns must be submitted to HMRC by 19 May. Robert Leach rounds up some last minute advice.
Along with the company’s P35, a P14 must be submitted for each employee and some other documents. Penalties are imposed for any late filing. Under HMRC’s revised penalty regime, these can be up to £3,000.
To reduce the number of employers who were penalised for late filing in recent years, HMRC sent out reminder letters dated 29 April this year. Those who have already complied can ignore it. The letter advises, “If you have already filed your return online or told us that a return is not due, thank you; no more action is needed. there is no need to worry.”
The P35 return must be submitted on-line with a few limited exceptions. These mainly relate to domestic staff and certain religious organisations. If the P35 is sent by post, it should arrive by Friday, 18 May to meet the deadline. Note that if you send a paper P35 when you should file on-line, the return will be rejected and you will be regarded as not having submitted the form. This could lead to a penalty.
Subsequent PAYE deadlines are:
- 31 May 2012: The P60 certificate must be given to each employee. This is a copy of the P14 form provided to HMRC
- 6 July 2012: Deadline for sending the P11D and P9D forms to declare any benefits in kind provided to employees
- 19 July 2012: Last day for paying class 1A National Insurance for the 2011/12 tax year. (One further day is allowed if paying on-line).
If a return has been submitted on paper, you should not also send in a return online. If the form is not the P35 provided by HMRC, it must have been approved by HMRC. The P35 will only be accepted if signed.
Only one form P35 should be submitted for each PAYE reference number. Make sure you use the correct number, as some old PAYE numbers have been replaced.
- Common mistakes to avoid on employer annual returns - Intuit guide
- Sage payroll year end blog
- IRIS Paymaster year end help section
- Common errors to avoid on form P14 - BusinessLink.gov guide
- Common errors to avoid on form P35 - HMRC guidance
- HMRC list of valid National Insurance number prefixes