A draft version of the P35 Employer's Return that will be used at the end of the current tax year has been released on that part of the Inland Revenue's website that is aimed at system developers. The version of the form that is currently in use for business cessations will not be used at the year-end. The new version replaces the form P35(MT) which has now been withdrawn.

There are several changes to the new form, as follows:

• There are a number of textual changes that recognise that the form may be completed and sent electronically instead of as a paper document.
  
  
• There are reminders that any forms P38(S) Student Employees should now be retained and not sent in with the P14s. The wording of Checklist Question 1 has been amended accordingly.
  
  
• Where an employer is sending in two or more P14 part submissions, there is a new section for the employer to indicate the number of P14 submissions that make up the totals shown on the P35, and a change to the declaration to indicate that P14s are being sent separately in one or more parts. For example, if a medium-sized employer is sending some P14s by magnetic media, others by Internet and the rest on paper forms, the employer would enter '3' in the box. (Note that large employers (250+ employees) may not complete a paper P35 for 2004/05.)
  
  
• The reconciliation section on pages 2 and 3 is unchanged in format but it is now split into two parts. Part 1 is the summary of employees and directors; part 2 is the summary of payments for the year, i.e. the reconciliation. Part 1 is only completed with the names of directors and employees, together with their NICs and tax details, if all P14s are being submitted on paper. If some or all of the P14s are being submitted by Internet, EDI or magnetic media, part 1 is not completed at all, only the reconciliation section, starting with total NICs and tax boxes.

Discuss this news item in the PayPerShop Forum

...back to 23 July 2004


Sources:
www.ir.gov.uk/ebu/P35(2004)(2)p14.pdf
www.ir.gov.uk/ebu/P35(2004)(2)p23.pdf