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HMRC internal manual

PAYE Manual

Employer returns: issue / cancel employer returns: issuing and cancelling employer return

The following subject is presented as follows

Background

BROCS automatically issues Annual Returns during the period January to March each year.

Employer Annual Returns

Employer Annual Returns forms P35, will be automatically issued to employers when the following is held on the employer record

  • Scheme type

    • NI
    • OCPN
    • P
    • PSC
    • SICK
    • TRONC
  • Segmentation band of 0-49 and

    • The employer is not registered to file online

    And

    • The previous years return was not filed online
  • Segmentation band excluded or exempt
  • An Employer Annual Return will not be automatically issued when the insolvent or deceased indicator is set
  • The Processing Office has inhibited the issue of forms by BROCS by setting relevant indicators. For example NOP35, NOCIS36 / SC35
  • The segmentation band is 50-249 or 250+
  • The segmentation band is 0-49 and

    • The employer is registered to file online

    And

    • The previous years return was filed online

A P35N (Notification to file) will be sent during February each year to employers when the following is held on the employer record

  • Scheme type

    • OCPN
    • P
    • PSC
    • NI
    • OCPN
    • P
    • PSC
    • SICK
    • TRONC

And

  • Segmentation band of 0-49

    • The employer is registered to file online

    And

    • The previous years return was filed online

    Or

  • Segmentation band 50-249 or 250+ and the employer is registered to file online

Under certain circumstances it may be necessary for you to arrange for the issue of an Employer Annual Return form P35 outside the normal bulk issue. For example an employer may ask you to send them because they

  • Have lost, spoilt or not received the originals

Or

  • Require further forms

These may be issued for any tax year in the range CY to CY-6 inclusive using Function ISSUE / CANCEL EOY RETURN.

If an employer or agent requests a paper P35 to keep a record of the return information that has been submitted online, a blank P35, available on the HMRC website, can be used. Although the form is marked ‘For Information Only’ it is acceptable for use as an audit trail.

An Employer Annual Return for an employer who has ceased during the current tax year will be automatically sent out by BROCS as a consequence of entering a cessation date on the employer record. A P35 must be sent out manually following any other requests for a paper P35 during the current tax year.

Processing Offices are responsible for arranging the issue of paper returns following any request.

All returns must be submitted on an official P35 Employer Annual Return.

Issue of other Employer Annual Returns

Employer Annual Return P37 are automatically issued by BROCS during the period January to March each year to employer records with scheme type DOME.

Employer Annual Returns forms P35(TAS) are manually issued by Incentive Taxed Award Unit to employer records with scheme type TAS.

Employer Annual Returns P35(NORPRO) are manually issued by PAYE Employer Office to employer records with scheme type NORPRO.

Employer Annual Returns P35(EP) are issued to employer records with scheme type ELECT following a request from the Acting Returning Officer during the current tax year. An original return is sent using Function ISSUE / CANCEL EOY RETURN. Duplicates and additional returns for current and previous must be issued manually.

The due date for a P35(EP) is 30 days after the election has taken place.

Employer Annual Returns P35(PS) are automatically issued to employer records with scheme type PSS in Jan / Feb each year. Additional or duplicate returns must be issued manually.

Further information on the different annual returns associated with different scheme types can be found in the subject ‘Scheme types and return forms’ at PAYE52060.

Contractor Annual Returns

Contractor Annual Returns CIS36 are appropriate for years up to and including 2006-07.

Additional or duplicate forms CIS36 can be issued for years CY-6 to 2006-07 inclusive using Function ISSUE / CANCEL EOY RETURN.

Further information on issuing original, duplicate and additional Contractor Monthly CIS Returns can be found at CISR61000 onwards.

Returns issued by Debt Management offices

Certain returns are not issued automatically and are sent out by the appropriate Debt Management office. These include

  • Employer records which have the following indicators present on the employer record

    • Deceased
    • Insolvent (can only be set by a Recovery Office)
  • CY-7 and earlier returns

Returns recovered by Debt Management offices

There are various returns which are not sent back to the Processing Office once they are completed, but instead are sent to the appropriate Debt Management office to retain until the end of the tax year.

These returns include

  • Those returns that are issued by the Debt Management office

    • Deceased cases

    And

    • Insolvency cases
  • In-year cessation cases where the employer or contractor has ceased during the year
  • Forms P35(EP)
  • Forms P527 and P528 sent by the Acting Returning Officers during the year

Magnetic Media - additional and duplicate returns

From April 2004 the Employer Annual Return form P35MT was withdrawn. An employer who sends in their forms P14s by Magnetic Media will use an Employer Annual Return P35.

For years up to 2003-04 an employer operating magnetic media may request

  • A duplicate return if the original has been lost

Or

  • An additional return if there are further details to be provided

You can issue a duplicate Magnetic Media return by using Function ISSUE / CANCEL EOY RETURNS.

It is not possible to issue an additional P35MT. If an additional return is required then a normal additional P35 should be issued.

Where an additional return is issued the employer record must hold the P35ALSO indicator (for years up to 2003). This will then allow the return to be recorded as received.

Welsh language returns

If an employer or contractor requests Welsh language versions of any return forms, these can be obtained from

HMRC Welsh Unit
Ty Glas Avenue
Llanishen
Cardiff
CF14 5TS

Cancelling the request to issue additional and duplicate returns

Function ISSUE / CANCEL EOY RETURN may also be used to cancel a request to issue a duplicate or additional EOY return.

This function will not 

  • Cancel the request for a duplicate return unless a return of the same type for the same year has already been recorded as received

Or

  • Cancel the request to issue an in year P35(EP)

You cannot use this function for a year where the employer is operating PAYE in Real Time.