PAYE Returns - Deadlines For Employers

The end of the P.35

The P.35 that must be submitted for 2012/13 will in most cases be the last such Employers Annual Return that most employers will have to submit.

There may be some limited circumstances in which some employers may still have to complete a P.35 but as these will be so rare we will not deal with them here.

This is because of the introduction of Real Time Information (RTI). HM Revenue & Customs claim that not having to make one annual declaration and instead making either 52 weekly or 12 months disclosures will save employers time. Quite how this can be possible beggars belief. A more likely explanation is that it will provide much quicker information to HM Revenue & Customs so that they:-

  • Will know whether employers have paid the correct monthly PAYE amounts.

  • Can demand the exact amount due, plus interest and penalties if any employer fails to make the required monthly payments.

  • Have accurate information to deal with tax credits etc.

This is not the End of PAYE End of Year Declarations and Obligations

Many of the existing forms will still have to be completed each tax year. The following table summarised the main forms. The due dates for the various declarations are shown on the next page.

What will and won’t be still required?

Still Required

No Longer Required

P.60

P.14

P.11.D

P.35

P.11.D(b)

 

P.9.d

 

P.45 (new procedure)

 

The principal deadlines are as follows:

19th of every month

PAYE and NI deductions to be paid to HM Revenue & Customs so as to reach them by this date otherwise penalties and or an interest charge may be incurred but HM Revenue & Customs may not tell you until the end of the tax year! Do not wait until the 19th to make the payment!

19th May 2013 (for the last time)

The end of year return forms P35, P38 and P14 must be submitted to HM Revenue & Customs by this date.

A penalty of at least £100 will be incurred for the late or incomplete submission of any forms P35 or accompanying forms. This increases with time and HM Revenue & Customs probably won’t tell you until the penalty has mounted up to a much bigger figure.

The most common omissions from annual payroll returns

The most common omissions from annual payroll returns in recent years have apparently been

  • Class 1A National Insurance.

  • National Insurance numbers.

Before you submit your annual return, please ensure that class 1A National Insurance have been included on the relevant employees' forms P14 and the amount due has been paid to HM Revenue & Customs.

It should also be ensured that the National Insurance numbers of all employees are shown on forms P14 because regulations allow HM Revenue & Customs to regard forms P14 as incorrect, which could potentially lead to a penalty, if the N.I. numbers are not shown on forms P14.

In addition, the failure to include National Insurance numbers on forms P14 is likely to lead to a P.A.Y.E. audit inspection visit because it is now a statutory requirement to obtain an employee's National Insurance number, before he or she is employed.

The National Insurance number will need to be included on payroll records if employers are not to fall foul of RTI regulations.

31st May

Forms P60 (certificate of pay and tax deducted) must be provided to each employee in employment on 5th April by this date. This will still be required even after RTI is introduced.

6th July

Forms P11D and P9D, the returns of benefits and expenses paid to employees and directors must be submitted to HM Revenue & Customs by this date. These will still be required even after RTI is introduced.

There are penalties for late submission and the submission of incorrect returns.

Employees and directors must also be given a copy of their return by this date, if they were employed on 5th April.

Certain employment termination payments and benefits made to employees or directors during the year ended 5th April must be reported to HM Revenue & Customs by this date. A report is required if an employment has been terminated and a settlement package is awarded, including non-cash benefits, which will exceed £30,000.

19th July

Class 1A National Insurance on company car and fuel benefits for the year ended 5th April must be paid to HM Revenue & Customs.

To find out how Handley Evans & Co can help you with your payroll and PAYE declarations contact us

For information of users:
This material is published for the information of clients. It provides only an overview of the regulations in force at the date of publication, and no action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material can be accepted by the authors or the firm.