PAYE at the end of the tax year

In this section:

PAYE: end of tax year checklist
Finalising form P11 at the end of the tax year
Completing the Employer Annual Return: P14s and P35
Correcting PAYE errors
PAYE dates to remember this month
PAYE Online login page

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Completing the Employer Annual Return: P14s and P35

Completing the Employer Annual Return: P14s and P35

At the end of the tax year you'll need to prepare and file your forms P14 End of Year Summary (one for each employee) and P35 Employer Annual Return (one for each Employer PAYE (Pay As You Earn) reference). These forms, which summarise the pay and deductions you've made over the tax year, must reach us no later than 19 May.

If you have 50 or more employees you must file forms P14s and P35 online. If you have fewer than 50 employers, you don't have to file online until at least 2010 but you can get tax-free payments for doing so before then.

On this page:

Receiving notification to file your Employer Annual Return
Using software to complete the Employer Annual Return
Completing the paper form P14
Completing the paper form P35
Employer Annual Return - avoiding common errors
More useful links

Receiving notification to file your Employer Annual Return

Before the end of the tax year we send out a notification to file the Employer Annual Return. How we notify you depends on how many employees you have and whether you've used PAYE Online for Employers before.

If you have 50 or more employees

If you have 50 or more employees you'll receive an online P35N Notification to File via the 'view employer notices' page on your PAYE Online service account. You won't receive a paper copy of a P35.

If you have fewer than 50 employees

If you have fewer than 50 employees and you've never filed online (even if you've registered for PAYE Online) you'll receive a paper form P35 by the end of March.

If you intend to file a paper return you must contact HM Revenue & Customs (HMRC) if you haven't received your paper P35 by this time.

If you have fewer than 50 employees and you filed your previous year's return online and are registered to file online, you'll receive an online P35N Notification to File via the 'view employer notices' page on your PAYE Online for Employers account. You won't receive a paper copy of a P35.

Notification if an agent acts for you

P35Ns can also be viewed online by your agent as long as you've given them authority to do so act for you. If you haven't authorised your agent you'll still receive a paper P35.

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Using software to complete and send in the Employer Annual Return

Using software is faster and less prone to errors than using paper methods and makes filing online easy. You can use commercial software, HMRC's integrated P11 Calculator on the Employer CD-Rom or our free service 'Online Return and Forms - PAYE'.

Commercial payroll software

If you use commercial payroll software the P14 and P35 figures will be collated and completed for you automatically from your in-year figures. Depending on the software's features you may also be able to file online easily and seamlessly - reducing time and the likelihood of error. Simply follow the instructions in your payroll package.

To find out more about payroll products that have been checked as compatible with HMRC systems read our guide 'Choosing a payroll system'.

Choosing a payroll system

HMRC's integrated P11 Calculator

If you use HMRC's free P11 Calculator on the Employer CD-Rom to record pay and deductions, it will automatically create an end of year summary based on your in-year P11 entries for each employee. The summary gives you the figures you need to complete each employee's form P14, whether online or on paper. You then use the P14 figures to complete the online (or paper) form P35.

If you have used the P11 Calculator to work out your employees' deductions for the whole of 2007-08, and had nine or fewer employees in the employee database at 5 April 2008, you can file forms P14 and P35 online direct from the CD-Rom. This applies even if you had more employees during the year - providing you calculated the tax and National Insurance (NI) for all of them on the P11 Calculator.

If you had more than nine employees in the database on 5 April you won't be able to link through and file automatically from the P11 calculator - but you can still register for PAYE Online for Employers and file your return online using our free 'Online return and forms -PAYE service'.

More out about using the P11 calculator

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'Online return and forms - PAYE' service

If you have fewer than 50 employees you can file your Employer Annual Return online using our free 'Online Return and Forms - PAYE' service. You can use this service if your payroll software doesn't offer online filing or if you use the P11 Calculator but had more than nine employees at 5 April 2008 so don't qualify to file online from the CD-Rom, or if you worked out tax and NI manually.

To use this service you'll first need to register for PAYE Online for Employers. If you file online before 2010 you'll still qualify for a tax-free payment. Find out more by following the link to PAYE Online below.

Using software to print the employee's P60

If you're using commercial software or HMRC's P11 calculator and also filing your returns online, you'll be offered the facility to print the P60 that you will need to give to your employee at the end of the tax year.

Deadlines for filing PAYE online

If you have 50 or more employees you must file your Employer Annual Return (forms P14 and P35) online now. If you have fewer than 50 employers, you don't have to file online until at least 2010 but you can get a tax-free payment for filing online before then.

There are separate deadlines for filling forms P45 and P46.

PAYE Online and how to register - read the detail

Read about employer deadlines for filing PAYE online

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Completing the paper form P14

Before completing the paper form P35 Employer Annual Return you'll need to complete a form P14 for each employee employed during the tax year - including those who have left during the tax year - using totals from the form P11.

If using paper methods you have the option of:

completing the P14 forms manually
using a computer and printer

You can download or order copies of the forms under 'Useful links' below. Whichever method you use, make sure you use the correct tax year version of form P14.

Step by step guide to filling in the paper P14

The section 'Filling in the P14 summary' in the help booklet E10 'Finishing the tax year' contains a step by step guide to completing the different sections of paper form P14 - including what to do if you don't have all the information you need.

Bear in mind that even if completing a paper form P14, you can still use the P11 calculator on the Employer CD-Rom throughout the year to work out the figures you'll need. This will save you time and reduce the likelihood of error when adding up figures.

Also note that you can file your return online even if you've done your payroll on paper.

Read a step by step guide to filling in form P14

Read more about Using the Employer CD-Rom P11 calculator.

Understanding and Using PAYE Online for Employers

Filling in form P14 by hand - dos and don'ts

Follow these 'dos' and 'don'ts' to help ensure that the P14s that you submit are accepted.

Do:

Use form P14 (Manual). The tax year is shown in the bottom right-hand corner.
Use a ballpoint pen, or similar so that all three copies of the form can be read. You don't need to use carbon paper as the form uses self-carbonated paper.
Write clearly. If we can't read anything on your form we may need you to fill in a new one.
Show dates as DD MM YYYY, with no punctuation - eg 04 02 1959 is right. Entries such as 04 02 59, or 04-02-59, or 04/02/1959 are wrong.
Make sure that all entries are within the white boxes.

Don't:

Complete P14s in a pile as the markings will copy through to the forms below.
Make alterations. If you make a mistake, tear up the form and fill in a new one.
Use '£' signs.
Cross through boxes, or mark them 'N/A' - if no entry is required, leave the box(es) blank.
Use the continental style number 7.

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Tips if printing your P14s from a computer

Printing your form with an impact or laser printer is preferable to completing the form by hand. Follow the tips below to ensure your forms always print correctly:

make sure you use the correct impact or laser printer version of the form P14
show dates as DD MM YYYY - eg 04 02 1959
make sure printing is clear in all the boxes
print only within the white boxes - the entries must not touch the box edges
use font size 10, at 6 lines per inch.

Collating your paper P14s for faster processing

To help us process your forms more efficiently, there are a number of steps you can take before you send in your forms:

Put all your forms in alphabetical order of surname, or in the order your employees are listed on your P35 form.
If you use both forms P14 and approved substitutes, list and bundle them separately.

If you are sending in both landscape and portrait P14s, arrange your P35 listing and P14 bundles in this order: landscape first, portrait second. This will speed up the processing of the forms.

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Completing the paper form P35

The paper P35 form consists of four pages:

page 1 tells you what your obligations are and where to get further help
pages 2 and 3 require you to list the details of your employees and summarise your payments for the year
page 4 contains several 'tick box' questions for you to complete before signing and dating the form

You can read step-by-step instruction on how to complete the P35 form in the Employer Helpbook (E10) 'Finishing the tax year up to 5 April.' It also contains example pages that you can download and view and tells you want to do if you make a mistake.

Read Employer Helpbook E10

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Employer Annual Return - avoiding common errors

Common P35/P14 errors whether filing online or by paper

Send only one P35 for each Employer PAYE reference. We will not consolidate the details sent on more than one P35 for a single Employer PAYE reference.
Don't send a paper P35 as well as an online return. If we receive a paper return before we receive your online one, we'll treat the paper return as the first one we received. That means you'll miss out on your tax-free payment if you have fewer than 50 employees. And if you send a paper return when you have 50 or more employees you'll be charged a penalty for not filing online.
Your P14s must show the correct National Insurance number for the employee.

Your return will be rejected if:

any P14 shows a 'temporary' National Insurance number - eg TN220157M for a male born on 22nd January 1957
you use an incorrect National Insurance number format

If you used temporary National Insurance numbers during the tax year, remember to change them to the correct number before you file your return. Third party software may do this automatically.

If you can't obtain the correct National Insurance number leave the National Insurance box on the P14 empty and enter the date of birth and gender in the appropriate boxes. If you can't get the date of birth, enter the default date of 01 01 1901 in the date of birth box.

Common P35/P14 errors submitted on paper

The following errors commonly hold up the processing of paper forms P35/P14, or may lead to a rejection:

stationery not approved by HMRC
P35 not signed
P35 some sections incomplete
P35 not enclosed with the P14s
P35 cover sheet not enclosed with the P14s
P14s not all enclosed when checked against form P35
P14 form is for the wrong tax year
P14 invalid National Insurance number, date of birth or gender
P14 employee name missing
P14 National Insurance contribution boxes incomplete
P14 'Pay' box incomplete
P14 unclear entries - eg too faint, not displayed within the white boxes, font size too small, hole punched over relevant information, areas of the form damaged
P14s split incorrectly
P14 attached together with glue or staples
P14 - sticky labels or correcting fluid have been used
P14 - sprockets haven't been taken off

All returns (paper or online) have to pass a series of initial quality checks. If your forms fail these checks they will be sent back to you for amendments. Many of the checks are made automatically if you use software to file your return - another good reason to consider switching away from paper methods.

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