P35

Each registered employer is obliged by law to account each year for the PAYE deducted from his or her employees. A special return, which is commonly known as a P35 return, is used for this purpose.

End of Year Returns, showing details of Pay and PAYE Tax & National Insurance deductions (forms P35 and P14) must be submitted to the relevant PAYE Tax office. Electronic filing of forms P35 is compulsory for 2009/10 onwards for all employers.

Electronic Filing of P35 Tax Returns

HM Revenue & Customs provides the facility to submit P35 Returns on-line. It also provides the facility to print P60s for employees and copies of the P35 declaration and employee details. However, you will need to have registered with HMRC to obtain a password to enable you to file online.

HMRC apply a range of quality checks on end of year returns filed on-line, and that any return that fails the checks will be rejected.

Alternatively if you use the services of Taxing Nannies, we will automatically complete all the year end procedures and file your P35 electronically and provide P60s for your employees.

Where the Return is still outstanding after this date, HMRC will pursue an automatic penalty of £100 for every month or part-month that the Return is late, multiplied by the number of 'units' of 50 employees. Therefore, a firm with 51 employees which filed its P35 on 20 June 2009 would count as being two months late and as having two 'units' of 50 employees. The fine would accordingly be £400.

For incorrect P35 forms, there is a maximum penalty of 100% of any additional tax found to be due.