PAYE46021 - employer returns: employer return post capture: checklist and declaration on P35 and P35MT - up to 2004 (Action Guide)

This procedure is done

As part of post capture processing for any year up to 2003/04
When capturing a return or part return for years 2004/05 onwards. For details for 2004/05 and later years see subject ‘Checklist And Declaration On P35 - 2005 Onwards’ PAYE43020

To carry out checks on the entries made on a P35 or P35MT return, follow steps 1 - 36 below.

For the year 2003/04 onwards entries are found are on Page 4 of the P35 and P35MT. For years 2002/03 and earlier years they were on the front page. P35MT is used for returns up to 2003/04 only.

The following actions must be taken immediately after a return has been successfully captured.

The guide is presented as follows

Initial action	Step 1 - 2
Question 1	Steps 3 - 5
Question 2	Steps 6 - 13
Question 3	Steps 14 - 15
Question 4	Steps 16 - 21
Question 5	Steps 22 - 29
Question 6	Steps 30 - 34
ECS action	Steps 35 - 36

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

Initial action

Review the answers provided on the P35 / P35MT and compare these with this table

Question	Answer
Question 1	Yes
Question 2	No
Question 3	No
Question 4	No
Question 5	No
Question 6	No

Where the entries on the return match the entries in the table

Review the P35 or P35MT for further entries - go to step 35

Otherwise

Make a note of the questions that do not match and follow the steps below

Question 1 go to step 3
Question 2 go to step 6
Question 3 go to step 14
Question 4 go to step 16
Question 5 go to step 22
Question 6 go to step 30

Question 1

Review the entry against question 1 on the P35 / P35MT

Where the answer is ‘ No’ - and form P38A is attached

Make a note to review the form P38A. Follow the Action Guide ‘Form P38 Review’ PAYE46041
No further action is needed for this question - go to step 35

Where the answer is ‘ No’ and P38A is not attached - go to step 4

Or

Where both boxes are blank - go to step 4

Review the P35 and check if it is noted ‘AMSO’

If it is, no further action is needed for this question - go to step 35

Otherwise

Enter the employer reference and the date the P35 / P35MT was received on the P38 list and review this as shown in the Action Guide ‘Form P38 Review’ PAYE46041

No further action is needed for this question - go to step 35

Question 2

Review the entry against question 2 on the P35

Where the answer is ‘ Yes’ go to step 7
Where both boxes are blank go to step 8

Issue P35 Draft Letter A to the employer

Then go to step 9

Issue P35 Draft Letter B to the employer
Use Function AMEND EMPLOYER INDICATORS to set the POST indicator
Put the papers on BF for 4 weeks

On reply or at BF date

If you have received a reply pass the papers to the PAYE section to review
If no reply is received by the BF date pass the papers to the PAYE section to review
Use Function AMEND EMPLOYER INDICATORS to remove the POST indicator

Question 3

Review the entry against question 3 on the P35

Where the answer is ‘ Yes’ or where both boxes are blank go to step 15

Refer all cases to the Incentive Award Unit Team

HMRC Incentive Award Unit
Chapel Wharf
Trinity Bridge House
2 Dearmans Place
Salford
M3 5DS

Telephone number - 0161 261 3269

Question 4

Review the entry against question 4 on the P35

Where the answer to part 1 is ‘ Yes’ and part 2 is ‘ No’ go to step 17
Where both boxes are blank go to step 20

Issue form P39 to the employer
Make an entry in the employer related electronic file ‘P39 list’ to record

The employer’s name
The Office number
The employer reference
The date the P39 was issued

Pass the completed P39 to the PAYE section to consider
Where both boxes were left blank issue P35 Draft Letter C to the employer together with form P39
No further action is needed go to step 35

Question 5

Review the entry against question 5 on the P35

Where the answer to part 1 is ‘ Yes’ and part 2 is ‘ No’ go to step 23
Where both boxes are blank go to step 24

Issue P35 Draft Letter F to the employer
Issue P35 Draft letter G to the employer

In all cases

BF your papers for 4 weeks
Use Function AMEND EMPLOYER INDICATORS to set the POST indicator

Action on BF

At BF date issue a reminder to the provider and BF for an additional 4 weeks
If you have still not received a reply at the next BF review date pass a copy of the return and a report of your action to date to the Employer Compliance Section for your responsible Organisation Unit
Use Function AMEND EMPLOYER INDICATORS to remove the POST indicator

No further action is needed go to step 35

Question 6

Review the entry against question 6 on the P35

Where the answer in part 1 is ‘ Yes’ and part 2 is ‘ No’ there is no further action needed for this question - go to step 35
Where the answer in both boxes is ‘ Yes’ - go to step 31
Where both boxes are blank there is no further action needed - go to step 35

Deemed Payments

Review the return and any attachments for any statement by the employer that states they have included estimated figures for deemed payments. This could include

A separate letter from the employer
A note on any part of the return

Where no evidence is found no further action is needed for this question - go to step 35

Otherwise

You must take the following action

Enter the employer’s name and employer reference in the employer related electronic file ‘Service Companies - Deemed Payments’
BF to mid January
Ensure the letter or notification is attached to the P35

January review

At the BF date make a review of the employers recorded in the employer related electronic file

Use Function VIEW EOY RETURNS HISTORY to identify whether an additional return recording the deemed payment has been received

Where a return has been received note the entry in the employer related electronic file ‘return received’. No further action is required for this question - go to step 35

Or

Where the employer has confirmed that the provisional figures are correct - go to step 36

ECS action

Review the answers provided on the P35 and compare this with the table below which shows the standard default entries held on ECS

Question	Answer
Question 1	Yes
Question 2	No
Question 3	No
Question 4	No
Question 5	No
Question 6	No

Where the entries on the return match the ECS default screen - go to step 36

Otherwise

Using the ECS icon ‘P35 Capture’ update the P35 details on ECS so that they match the answers on the P35

Review entries on the P35 which refer to forms P11D. Has the employer stated that P11Ds are not due? If so

Use the ECS icon ‘P35 Capture’ and enter that information on to ECS

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