PAYE43021 - Employer returns: capture employer return - 2005 onwards: checklist and declaration on P35 - 2005 onwards (Action Guide)

This process should be followed

  • When capturing an employer return for any year 2004-05 onwards
  • As part of post capture processing for years up to 2003-04. For guidance on 2003-04 and earlier years see ‘Checklist and declaration on P35 and P35MT - up to 2004’ at PAYE46020
  • For guidance on question 6 for years 2007-08 onwards see 'P35 questions and declarations - 2008 onwards (Action Guide)' at PAYE53006

The following actions must be taken immediately before capturing an employer return if any of the answers to the questions are not as shown in the table in step 1.

Steps 1 - 2

Initial action

Steps 3 - 5

Question 1

Steps 6 - 13

Question 2

Steps 14 - 15

Question 3

Steps 16 - 21

Question 4

Steps 22 - 29

Question 5

Steps 30 - 34

Question 6

Steps 35 - 36

Non Standard Answers

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

Initial action

1. Review the answers provided on the P35 and compare these with this table

Question 1 - Yes

Question 2 - No

Question 3 - No

Question 4 - No

Question 5 - No

Question 6 - No

2. Where the entries on the return match the entries in the table

  • Review the P35 for further entries - go to step 35, otherwise
  • Make a note of the questions that do not match and follow the steps below
    • Question 1 go to step 3
    • Question 2 go to step 6
    • Question 3 go to step 14
    • Question 4 go to step 16
    • Question 5 go to step 22
    • Question 6 go to step 30

 

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Question 1

3. Review the entry against question 1 on the P35

  • Where the answer is ‘No’ - and form P38A is attached
    • Make a note to review the form P38A. See ‘Form P38 review (Action Guide menu)’ at PAYE46041
    • No further action is needed for this question - go to step 35
  • Where the answer is ‘No’ and P38A is not attached - go to step 4 , or
  • Where both boxes are blank - go to step 4

4. For returns relating to 2007 and earlier only. Review the P35 and check if it is noted ‘AMSO’

  • If it is, no further action is needed for this question - go to step 35, otherwise

5. Enter the employer reference and the date the P35 was received on the P38 list and review this as shown in ‘Form P38 review (Action Guide menu)’ at PAYE46041

No further action is needed for this question - go to step 35

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Question 2

6. Review the entry against question 2 on the P35

  • Where the answer is ‘Yes’ go to step 7
  • Where both boxes are blank go to step 8

7. Issue P35 Draft Letter A (Word 24KB) to the employer

  • Then go to step 9

8. Issue P35 Draft Letter B (Word 24KB) to the employer

9. Use Function AMEND EMPLOYER INDICATORS to set the POST indicator

10. Put the papers on BF for 4 weeks

On reply or at BF date

11. If you have received a reply pass the papers to the PAYE section to review

12. If no reply is received by the BF date pass the papers to the PAYE section to review

13. Use Function AMEND EMPLOYER INDICATORS to remove the POST indicator

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Question 3

14. Review the entry against question 3 on the P35

  • Where the answer is ‘Yes’ or where both boxes are blank go to step 15

15. Refer all cases to the Incentive Award Unit Team

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

 

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Question 4

16. Review the entry against question 4 on the P35

  • Where the answer to part 1 is ‘Yes’ and part 2 is ‘No’ go to step 17
  • Where both boxes are blank go to step 20

17. Issue form P39 to the employer. Obtain the form via SEES

18. Make an entry in the employer-related electronic file ‘P39 list’ to record

  • The employer’s name
  • The office number
  • The employer reference
  • The date the P39 was issued

19. Pass the completed P39 to the PAYE section to consider

20. Where both boxes were left blank issue P35 Draft Letter C (Word 24KB) to the employer together with form P39

21. No further action is needed go to step 35

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Question 5

22. Review the entry against question 5 on the P35

  • Where the answer to part 1 is ‘Yes’ and part 2 is ‘No’ go to step 23
  • Where both boxes are blank go to step 24

23. Issue P35 Draft Letter F (Word 24KB) to the employer

24. Issue P35 Draft Letter G (Word 24KB) to the employer

In all cases

25. BF your papers for 4 weeks

26. Use Function AMEND EMPLOYER INDICATORS to set the POST indicator

Action on BF

27. At BF date issue a reminder to the provider and BF for an additional 4 weeks

28. If you have still not received a reply at the next BF review date pass a copy of the return and a report of your action to date to the Employer Compliance Section for your responsible Organisation Unit

29. Use Function AMEND EMPLOYER INDICATORS to remove the POST indicator

  • No further action is needed go to step 35

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Question 6

30. Review the entry against question 6 on the P35

  • Where the answer in part 1 is ‘Yes’ and part 2 is ‘No’ there is no further action needed for this question - go to step 35
  • Where the answer in both boxes is ‘Yes’ - go to step 31
  • Where both boxes are blank there is no further action needed - go to step 35
  • For guidance on question 6 for years 2007-08 onwards see 'P35 questions and declarations - 2008 onwards (Action Guide)' at PAYE53006

Deemed Payments

31. Review the return and any attachments for any statement by the employer that states they have included estimated figures for deemed payments. This could include

  • A separate letter from the employer
  • A note on any part of the return

32. Where no evidence is found no further action is needed for this question - go to step 35, otherwise

33. You must take the following action

  • Enter the employer’s name and employer reference in the employer-related electronic file ‘Service Companies - Deemed Payments’
  • BF the employer-related electronic file to mid January
  • Ensure the letter or notification is attached to the P35

January review

34. At the BF date make a review of the employers recorded in the employer-related electronic file

  • Use Function VIEW EOY RETURNS HISTORY to identify whether an additional return recording the deemed payment has been received
    • Where a return has been received note the entry in the employer-related electronic file ‘return received’. No further action is required for this question - go to step 35, or
    • Where the employer has confirmed that the provisional figures are correct - go to step 36

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Non Standard Answers

35. Review the answers provided on the P35 and compare this with the table below which shows the standard default entries held on EBS

Question 1 - Yes

Question 2 - No

Question 3 - No

Question 4 - No

Question 5 - No

Question 6 - No

  • Where the entries on the return match the EBS default screen - go to step 36, otherwise
  • Update the P35 details on EBS so that they match the answers on the P35

36. Record the entry on the P35 which refers to the submission of forms P11D as follows

P11Ds Are enclosed, record as N

P11Ds Will be sent later, record as N

P11Ds Are not due, record as Y

P11Ds Question left blank, record as N