Employer Annual Returns

7.1 Sending your Return in parts

You can send in your Employer Annual Return in parts using different transmission routes, as long as your software allows you to send your Return in parts.

Parts can be sent from more than one source (for example, some from your agent and some from you), using either the Internet (using third part software or HMRC’s Online Return and Forms – PAYE product), Electronic Data Interchange, paper or magnetic media. But it would be best if you can send your P14s and P35 in one go.

There is no limit to the number of parts you can send us, but the fewer the better.

Your Return is not complete until we have got all your P14s and your P35. We must have all parts by 19 May, or you may face a penalty for filing late. For example, if you send us your P35 part without your P14 part reaching us by 19 May, a complete Return was not sent to us on time, so you will face a late filing penalty.

If you choose to send part of your Return using magnetic media or paper, we will process what you send. But if you must file online (because the law says you must), you will face a penalty for not filing all the parts online. If you are a large employer and you use paper or magnetic media to send your parts, you will get a penalty for failure to file your whole Return online.

We will keep your part submissions until you have sent them all to us. A part can be made up of a batch of P14s or a P35, but not both. Your software must be able to send each P14 part with at least one P14 record and must include the summary subtotals for each monetary field needed for your P35. The P35 must contain a count of the number of P14 parts sent that will make up the complete Return.

So that we can bring all the parts of a Return together, you must give each part a 'Unique Identifier' as well as showing your PAYE scheme reference when you send your Return in parts. The Unique Identifier (of up to 12 characters and chosen by you) must be unique within your PAYE scheme and mean something to you. For instance, a company split four ways geographically might choose 'North', 'South', 'East' and 'West' as Identifiers. Another might identify directors and salaried employees with 'directors' and 'staff'. A part consisting of the P35 only does not need a Unique Identifier, but must show the number of P14 parts being sent as part of the Return.

If you have used Electronic Data Interchange or magnetic media in the past, you may have used a permit number when sending your Return. You may wish to use your permit number as your Unique Identifier even though you do not have to use permit numbers any more.

You (or your agent or payroll bureau) will need to agree with anyone else in your business (or your agent or payroll bureau) who is responsible for sending in parts, what the Unique Identifiers are for each part, and how many parts there are going to be.

You must use a P14 Cover sheet if you send P14 part you send on paper. You can get a P14 Cover sheet by calling the Employer Orderline on 0845 7 646 646. Do not use the P14 Cover sheet if your P35 and all your P14s are being sent on paper. Instead you must continue to send these forms together as a single package to your HM Revenue & Customs office.

When you send us any part we will check that it meets our initial validation requirements. If any or all of your parts are rejected, we will tell whoever sent us each part why it has been rejected. You will need to correct the information and resubmit the part before 19 May.

If parts are accepted whoever sends in each part will get the same acceptance message saying ‘The EOY Return has been processed and passed full validation’, even where there may be more parts to follow. It is important that the acceptance message is not misinterpreted as a successful submission of the whole Return. The message means that the part you have just sent us has been accepted. So whoever is sending the P35 Return part must make sure that every part has been or will be sent in. We recommend that agents tell their clients how many parts they intend to send and when they have been sent. We also recommend that people send the P35 last. You must make sure the P35 has the correct count of P14 parts and the correct accounting totals to pass the quality checks. We will store all parts until you have sent us the rest of your Return.

When you have sent all parts in, we will make sure that the whole Return also meets our Quality Standard. We need all your P14 parts and your P35 part before we can do our further Quality Standard checks.

Internet and Electronic Data Interchange filers can replace a part as long as the replacement has the same unique identifier as the part that it replaces. Our systems will override the first submission with the replacement part. A replacement must be made before the acceptance message has been sent for the P35.

Any changes or additions instigated by the employer after all parts of a Return including the P35 have been accepted must be made as an amended (sometimes called a supplementary) Return.