What happens if I can't calculate the tax and NICs due on 5 April in time to pay it to HMRC by the normal date of 19 April?
Most of the information needed to calculate the IR35 deemed payment should be available before 5 April, and it should be possible to make a good estimate of the tax and NICs due at that point. It will be important to keep records of relevant income and expenditure so that you can do this.
If you are not able to calculate the amount of tax and NICs due on the IR35 deemed payment by 19 April, we will accept a payment that date of a lower amount on account of the tax and NICs due, as long as HMRC is notified on the Employer's Annual Return that the amount is provisional. This should mean that the worker need not necessarily consult his accountant before making the payment on 19 April.
You should submit your Employer's Annual Return (Form P35) by 19 May. If you are able at that time to finalise the calculation, you should show the correct figure and pay the difference or request a repayment. Otherwise, you should make it clear that the figure is still provisional.
You should seek to finalise matters as soon as possible thereafter, and send in a supplementary return with a final payment, or request for repayment.
Interest will be charged, calculated from 19 April when the original payment was due, but no penalties will be sought for late filing if:
- an Employer's Annual Return is received by 19 May, showing remuneration paid during the year, plus an amount on account of the IR35 deemed payment, with tax and NICs correctly calculated on the aggregate figure, and,
- a supplementary return including the correct final figure for the deemed
payment is sent in to HMRC by 31 January following the end of the tax
year.
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