PAYE47035 - Employer returns: employer return - overpayments: form P35D

Purpose

If you need to contact the employer or contractor to establish the reason for an overpayment, form P35D should normally be used.

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Action prior to issuing P35D

The form requires you to complete the following information taken from the return

  • Tax Year
  • Total paid including any Tax-Free Incentive payments awarded
  • Amounts due
    • Total Income Tax
    • Total NICs after adjustments
    • Total Student Loan Deductions
    • SSP / SMP / SPP / SAP funding from HMRC for years up to and including 2010-2011
    • SSP / SMP / OSPP / ASPP / SAP funding from HMRC for years 2011-2012 onwards
    • Tax Credit funding from HMRC
  • Deductions shown on P35
    • Statutory payments recovered
    • Total Tax Credits paid to employees
    • CIS deductions suffered
  • Amount due per form P11D(b) if applicable
  • Apparent overpayment

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Employer / contractor responsibilities

The form asks the employer or contractor to

  • Consider whether any information was omitted from the return, and if so, to provide this by sending the additional information to you

Or

  • Where the employer / contractor believes that the end of year return is correct, supply an explanation for the apparent overpayment

Note: If an employer tells you that they have paid Working Tax Credit after 31 March 2006 and / or has carried forward Tax Credit Funding into 2006-07, you should advise the employer to contact the Employer Helpline on 0300 200 3200 (text phone 0300 200 3212).

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Exceptions

There may be situations where the wording on form P35D is inappropriate. Examples may include

  • An employer who has ceased in business
  • Return types other than P35

Or

  • You may wish to include interest or surcharge for late payment in your calculation

In these circumstances a letter on the lines of form P35D should be issued instead, amended as appropriate.