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HMRC internal manual

PAYE Manual

HM Revenue & Customs
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Employer returns: employer return - quality checks: form P35 only - up to 2004 (Action Guide)

Note: This subject provides details of how to record receipt of employer returns for tax years up to 2003-04.

To carry out the checks required prior to recording receipt of a P35 only for years up to 2004, follow steps 1 - 5 below. The guide is presented as follows.

These checks must be made on the day the return is received.

  Step 1
  Step 2
  Steps 3 - 5

For details of how to access any of the Employer Business Service functions, use PAYE057.

Review scheme type

1. Use Function VIEW EMPLOYER SUMMARY to identify whether this is a Payment Card Reward Scheme
  * If it is
  * Date stamp any return, not already stamped, with the date it was received
  * Record receipt of the return. Follow the Action Guide ‘Recording receipt of employer return’ PAYE41041
  * If it is not go to step 2

Review form P35

2. Review the return
  * Ensure that the return is an official P35 employer annual return
  * If no deductions are shown or the return shows entries of ‘NIL’, the return must be dealt with as a NIL return. Follow the Action Guide ‘Recording receipt of employer return’ PAYE41041
  * Where entries have been made showing deductions of Income Tax and / or NIC have been made from employees it is likely that forms P14 are missing - go to step 3
  Note: Photocopies of the official P35 can only be accepted where
  * It is identical to the official form
  * The return bears the signature, in ink, of the relevant person
  We cannot accept photocopies of the completed forms P35 where the signature is also photocopied

Missing forms P14

3. Review other papers in your office to see whether the forms P14 have become detached from the return
  * If they have, attach the forms P14 to the form P35 and follow the Action Guide ‘Form P35 and forms P14 - up to 2004’ PAYE40020
  * If they have not become detached go to step 4
4. Send back the whole return to the employer immediately using the Returning Unacceptable Forms P35 and P14 Letter (Word 26KB)
  * Explain why the return is not acceptable
  * Ask the employer to submit a return in the correct format and / or provide the missing information
  * Inform them that this return has not been recorded as a complete return and therefore penalties under S98A(2) TMA 1970 may accrue if an acceptable return is not submitted by the due date
5. Use Function AMEND EMPLOYER NOTES to record your actions and then file the papers in the employer record pad. The note must show
  * The date the return was received
  * The reason the return was not acceptable
  * The date it was returned to the employer