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HMRC internal manual

PAYE Manual

From
HM Revenue & Customs
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Employer returns: employer return - quality checks: form P35 only - 2005 onwards (Action Guide)

Note: This subject provides details of how to record receipt of employer returns for tax years from 2004-05 onwards.

To carry out the checks required prior to recording receipt of a P35 only for years 2005 onwards, follow steps 1 - 7 below. The guide is presented as follows.

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

  Step 1
   
  Step 2
  Step 3
  Steps 4 - 7

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

Year of return

1. Identify the year shown on the return
   
  * If the return is for the current tax year (CY) and today’s date is before 24 March of that tax year, send the return and enclosures to the Debt Management Office
  * If the return is for the current tax year (CY) and today’s date is on or after 24 March go to step 2
  * If the return is for a year CY-1 or earlier
  * For returns for years up to 2003-04 follow Action Guide ‘Form P35 only - up to 2004’ PAYE40021
  * For returns for years 2005 onwards - go to step 2

Review scheme type

| 2. | Use Function VIEW EMPLOYER SUMMARY to identify whether this is either | || |   | * A Payment Card Reward Scheme | |   | * An EXAM scheme | |   | If it is | |   | * Date stamp any return, not already stamped, with the date it was received
 
And | |   | * Record receipt of the return. Follow the Action Guide ‘Recording receipt of employer return’ PAYE41041 | |   | If it is not go to step 3 |

Review form P35

3. Review the return. Returns may be regarded as incomplete / incorrect where any of the following apply
   
  * The return is unsigned
  * The P35 return submitted is not the correct version for that tax year
  * The return submitted is not an official P35 employer annual return
  * Information is missing from the P35
  Note: Photocopies of the official P35 can only be accepted where
  * It is identical to the official form
  And
  * 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

4. Check whether any deductions for tax and / or NIC are shown on form P35
   
  * If no deductions are shown on the return or the return entry shows ‘Nil’ the return must be dealt with as a NIL return. Follow the Action Guide ‘Recording receipt of employer return’ PAYE41041
  * If deductions are shown - go to step 5
5. If deductions are shown check the employer’s certificate and declaration section of the P35 to see whether the employer has stated the forms P14 will be sent in parts
  * If the forms P14 will be sent in parts
  * Date stamp any return, not already stamped, with the date it was received
  * Write ‘Part Return’ in pencil on the front of the return
  * And
  * Record receipt of the return. Follow the Action Guide ‘Recording receipt of employer return’ PAYE41041
  Otherwise
  * Go to step 6
6. 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 - 2005 onwards’ PAYE40029
  * If they have not become detached go to step 7
7. Use Function RECORD RETURN RECEIPT to record the failure reason
  * Use SEES in Microsoft Word to generate a failure letter
  * Send the return back to the employer with the failure letter
  * Make an entry in the employer-related electronic file ‘Employers making mistakes on EOY Returns’