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HMRC internal manual

PAYE Manual

Employer returns: employer return - overpayments: form P35D


If you need to contact the employer or contractor to establish the reason for an overpayment, form P35D should normally be used.

Action prior to issuing P35D

The form requires you to complete the following information taken from the return

  • Tax Year
  • Total paid including any Tax-Free Incentive payments awarded
  • Amounts due

    • Total Income Tax
    • Total NICs after adjustments
    • Total Student Loan Deductions
    • SSP / SMP / SPP / SAP funding from HMRC for years up to and including 2010-2011
    • SSP / SMP / OSPP / ShPP / SAP funding from HMRC for years 2011-2012 onwards
    • Tax Credit funding from HMRC
  • Deductions shown on P35

    • Statutory payments recovered
    • Total Tax Credits paid to employees
    • CIS deductions suffered
  • Amount due per form P11D(b) if applicable
  • Apparent overpayment

Employer / contractor responsibilities

The form asks the employer or contractor to

  • Consider whether any information was omitted from the return, and if so, to provide this by sending the additional information to you
  • Where the employer / contractor believes that the end of year return is correct, supply an explanation for the apparent overpayment

Note: If an employer tells you that they have paid Working Tax Credit after 31 March 2006 and / or has carried forward Tax Credit Funding into 2006-07, you should advise the employer to contact the Employer Helpline on 0300 200 3200 (text phone 0300 200 3212).


There may be situations where the wording on form P35D is inappropriate. Examples may include

  • An employer who has ceased in business
  • Return types other than P35
  • You may wish to include interest or surcharge for late payment in your calculation

In these circumstances a letter on the lines of form P35D should be issued instead, amended as appropriate.