PAYE40029 - employer returns: employer return – quality checks: form P35 and forms P14 - 2005 onwards (Action Guide)


Note: This subject provides details of how to record receipt of employer returns for tax years from 2004/05 onwards

To carry out the checks required prior to recording receipt of a form P35 and forms P14 for years 2005 onwards, follow steps 1 - 12 below. The guide is presented as follows

Note: These checks must be made on the day the return is received

Year of returnStep 1
Form P35 checkStep 2
Form P14 checksSteps 3 - 9
Repairing errors foundSteps 10 - 11
Send back the returnStep 12


For details of how to access any of the Employer Business Service functions use the [Index of Functions] button on the left of the screen

Year of return

  1. Identify the year shown on the return

  • If the return is for the current tax year (CY) and today’s date is before the 24th of March, send the return and enclosures to the Debt Management Office
  • If the return is for the current tax year (CY) and today’s date is on or after the 24th of March go to step 2
  • If the return is for a year CY-1 or earlier
  • For returns for years up to 2003/04 follow Action Guide ‘Form P35 And Forms P14 – Up To 2004’ PAYE40020
  • For returns for years 2005 onwards - go to step 2

Form P35 check

  1. Review the P35 employer annual return and note any of the following errors to be taken up with the employer

  • A paper return form is incomplete (a paper form P35 is received without all the forms P14)

Note: If an employer intends to send the whole return by paper, then the return must be submitted as a complete return and not in parts

  • The return is unsigned
  • The return submitted is not an official P35 employer annual return
  • The return submitted is an unofficial / unapproved P35 employer annual return
  • The P35 return submitted is not the correct version for that tax year

And

  • Information is missing from the P35

Note: Photocopies of the official P35 can only be accepted where

  • It is identical to the official form

And

  • The return bears the signature, in ink, of the relevant person

We cannot accept photocopies of the completed forms P35 where the signature is also photocopied

Form P14 checks

  1. Randomly select 10 forms P14 for examination. If there are less than 10 forms P14 you must count all of them and compare the total received with the number of entries on the form P35

Note: The machines used to scan forms P14 can only read details on approved forms and photocopies are not acceptable

  1. Review the number of P14s received

  • If the return contains more than 10 forms P14, and if the number of forms P14 received corresponds with the number entered on the return - go to step 5
  • If the number of forms P14 is less than the number entered on the P35 return - go to step 6
  • If the number of forms P14 is more than the number entered on the P35 return - go to step 7
  • If the errors found on the return can easily be repaired - go to step10
  • If you need to send the return back to the employer – go to step 12
  1. Review the selected forms P14 to ensure they are complete and correct. For more information see subject ‘Paper Quality Checks’ PAYE40050

  • If the forms are complete and correct go to step 11
  • If the forms cannot be corrected / reconstructed (for further guidance see subject ‘Correction Of Failed Returns’ PAYE40035) go to step 12
  1. Where the number of forms P14 is less than the number entered on the P35 return

  • Do not record receipt of the return
  • Go to step 12 to send back the return immediately as 'incomplete'
  1. Where the number of forms P14 is more than the number entered on the P35 return

  • Identify and separate from the return the forms P14 that are not shown on the P35
  • Contact the employer to resolve the discrepancy. Advise the employer of any other errors that are apparent
  • If you establish that the additional forms P14 should not have been sent with that return dispose of the P14s as necessary, otherwise
  • Advise the employer that
  • They must complete an additional return that you will arrange to be issued
  • You will return the forms P14 under separate cover
  • Both the completed Additional Complete return and the forms P14 must be returned to you as soon as possible
  • Use Function ISSUE / CANCEL EOY RETURN to issue the additional return
  1. Write to the employer to confirm the points raised during your conversation

  • Enclose the additional P14s
  • Retain a photocopy of the P14s with a copy of your letter in the employer record pad (unless you need further information from the employer regarding other errors)
  • Ask the employer to return the forms P14 with their completed additional return as soon as possible
  • Request any other outstanding information
  • Make an entry in the employer-related electronic file 'Employers making mistakes on EOY Returns'
  1. If the employer has not made any other errors continue to process the original return as normal

  • Date stamp any return, not already stamped, with the date it was received

And

  • Record receipt of the return. Follow the Action Guide ‘Recording Receipt Of Employer Return’ PAYE41041

Repairing errors found

  1. To repair forms P14 or P35, either

  • Strike through the illegible entry on the form P14 and enter in the correct information clearly. Note: You must use green ink for this purpose

Or

  • Prepare a new form P14 to record the correct information. Note: This must be noted ‘Pro-Forma’ and completed in green ink
  1. If the return is now complete

  • Date stamp any return, not already stamped, with the date it was received

And

  • Record receipt of the return. Follow the Action Guide ‘Recording Receipt Of Employer Return’ PAYE41041

Send back the return

  1. Use Function RECORD RETURN RECEIPT to record the failure reason.

  • Use SEES in Microsoft Word to generate a failure letter
  • Send the return back to the employer with the failure letter
  • Make an entry in the employer-related electronic file ‘Employers making mistakes on EOY Returns’

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