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HMRC internal manual

PAYE Manual

Employer returns: employer return forms: form P35(MT)

Note: From April 2004 the P35MT will be withdrawn. Instead there will be only one version of the P35 which must be used by all employers who wish to make their P35 return on paper.

A form P35MT is a return submitted by an employer (for years up to 2004) using ‘Magnetic Media’. Magnetic media is a collective term for returns sent using

  • Floppy disk (also known as flexible disk or diskette)
  • Magnetic tape
  • Data cartridge

It is appropriate to the following scheme types

  • NI
  • OCPN
  • P
  • PSC
  • SICK

An employer participating in the magnetic media scheme does not have to produce

  • Forms P14 or substitutes
  • P35 continuation sheets - form P35 (CS)

But must 

  • Prepare forms P60


  • Complete form P35MT

A Magnetic Media return is in two parts

  • Form P35MT (for years up to 2004, P35 for years 2005 onwards) is completed by the employer and sent to the relevant Processing Office
  • Magnetic media is submitted by the employer to HMRC, National Insurance Contributions Office (NICO)

On receipt of Magnetic Media data NICO prepares and forwards to the Processing Office a Magnetic Media invoice which includes

  • Tax year
  • Processing Office numeral and employer reference
  • Tax paid
  • National Insurance Contributions (NIC) (employer and employee)
  • Number of employees in the scheme
  • Total Statutory Sick Pay (SSP) recovered
  • Total Statutory Maternity Pay (SMP) recovered
  • NIC Compensation on SMP
  • Total Statutory Adoption Pay (SAP) recovered
  • NIC Compensation on SAP
  • Total Statutory Paternity Pay (SPP) recovered
  • NIC Compensation on SAP
  • Total NIC rebate

These entries are then checked against the totals shown on the return to ensure there is no discrepancy.

A Magnetic Media return is not complete until both parts are received.

Electronic Data Interchange (EDI)

From April 2000 employers have been able to send 1999-2000 forms P14 by EDI.

These employers must still send a completed form P35MT (for years up to 2004) to their relevant Processing Office and NICO will forward to that office a Magnetic Media Invoice as normal.

From 2005 employers using online filing are able to submit their return in one or more part(s).