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Your Employer Annual Return is due by 19 May following the end of the tax year. Filing your return online is quick, easy, convenient and secure - and it's a requirement for almost all employers.
This guide lists the different ways you can file your return online and sets out what you need to do to get started. It explains how to amend your return if you need to make a change after it has been filed. And it provides a link to separate guidance for employers who are exempt from the requirement to file online.
On this page:
You must complete and file an Employer Annual Return if you have had to maintain a form P11 (or equivalent payroll deductions record) for at least one employee during the tax year. This applies even if you didn't have to make any deductions of PAYE (Pay As You Earn) tax or National Insurance contributions (NICs) from your employee(s) during the year.
The Employer Annual Return comprises of:
Your return must reach HM Revenue & Customs (HMRC) no later than 19 May following the end of the tax year. If your return is late, HMRC may charge you a penalty.
Penalties if you file your Employer Annual Return late
More about the requirement to maintain a form P11 for an employee
In this case you don't need to complete an Employer Annual Return but you do need to tell HMRC that you won't be sending one in. To find out how to do this, read the later section 'Notifying HMRC if you have no Employer Annual Return to make'
If you are required to file an Employer Annual Return, you'll also need to submit a form P38A to HMRC if you've had any employees during the year to whom both of the following apply:
You can file a P38A online and HMRC recommends that you do it this way.
Alternatively you can file on paper by downloading and printing a copy using the link at the end of this section, complete the form in the 'Fill in Forms' section of the Basic PAYE Tools package or by ordering the form from HMRC's Employer Orderline. You will not get a penalty for not filing a P38A online.
Almost all employers are required to file their Employer Annual Return (P35 and P14s) online. The only employers who can file on paper are:
If you wish to file on paper on the grounds of your religious beliefs or you employ a carer, follow the 'Online filing exemptions' link below to find out how to claim exemption.
If you file your return on paper when required to file online, HMRC may charge you a penalty.
Online filing exemptions - find out more
Penalties for failing to file PAYE online
If you haven't had to maintain any form P11s during the tax year you don't need to complete an Employer Annual Return - but you do need to tell HMRC that you won't be completing one. If you don't, they may send you unnecessary reminders or penalty notices.
If you're an employer you'll need to provide:
For information about how and when to complete a form P11D(b), follow the link at the end of this section.
If you're an agent you'll need to provide:
HMRC strongly recommends you notify them online that you have no return to make using the links below. Not only is it quicker, cheaper and easier than writing or calling but HMRC will also confirm via email that they have received your online form. They will also email you to tell you when they have acted on it.
Please note that you will not be able to save the information you input during completion therefore it's important that you have it all to hand before you start (see previous section).
It's essential the information you provide is accurate and complete, as errors could mean your form is rejected or may require HMRC to contact you, which may delay your notification being processed. A common error to avoid is failing to tick one of the two boxes at the end of the form which relate to whether a form P11D(b) is due or not due.
Agents wishing to notify online must be registered for the PAYE online service for agents.
Employer - notify HMRC online that you've no return to make
Agent - notify HMRC online that your client(s) have no return to make
Alternatively, you can notify HMRC that you have no return to make by calling their Employer Helpline or writing to their Employer Office. Please note however that you won't normally receive a written acknowledgement if you notify by these methods.
Find contact details for the Employer Helpline and Employer Office
In order to file your Employer Annual Return online you must first register as a user of the 'PAYE Online for employers' service (or 'enrol' if you're already using another online service).
Registering or enrolling for PAYE Online only takes a matter of minutes, but you'll need to wait to receive an Activation Code in the post before you can start to file online. This will take up to a week to arrive. The deadline for filing your Employer Annual Return is 19 May, so the very latest you should register is a week before this.
How to register for PAYE Online
There's a range of online filing methods you can use to send your Employer Annual Return (P35 and P14s) to HMRC. Please note that you're not restricted to using just one of these options. For example, you could have an agent file your P14s but then file your form P35 yourself using HMRC's free service.
If you use a software package for your day-to-day payroll during the year and it meets the HMRC Payroll Standard, it will automatically complete and file your return online at the end of the tax year.
HMRC's Payroll Accreditation Scheme will however cease from 5 April 2012 and is gradually being replaced by the new PAYE Recognition Scheme from 1 October 2011.
You can read more about HMRC's accreditation and recognition schemes and the software which meets the criteria for them by following the links below.
List of payroll software within the HMRC PAYE Recognition Scheme
List of HMRC-accredited payroll software products and suppliers
You can use the P11 Calculator in the Basic PAYE Tools package to file your return if you have up to and including nine employees at the end of the tax year.
Please note that the P11 Calculator is year-specific - so you can only file your 2010-11 return using the version that's within the 2011 Basic PAYE Tools package.
This service is available on the HMRC website, and can be used to file returns containing up to 50 P14s. There are four steps to filing your return online using this service:
Getting employee data right the first time means that time and money is saved by employers and HMRC. Over 80 per cent of data quality problems are caused by holding the incorrect or incomplete information about an individual's name, date of birth, or National Insurance number.
National Insurance number - Always enter the correct National Insurance number. Do not make a number up, use a default number or use someone else's.
Name - Always provide the correctly spelled full names, ensuring the forename(s) and surname are in the correct order.
Date of birth - Always provide the correct date of birth. Do not enter a default date or make up a date of birth.
Verification - Wherever possible, check the information with a trusted official source such as a birth certificate or passport.
You have an agent or bureau file online on your behalf, using the figures and records you provide to them.
EDI is an online-filing option that's generally suited for larger employers only. It has a separate registration process and more complicated software and telecommunications requirements.
When you file your Employer Annual Return online it's checked against HMRC's Quality Standard to make sure the information you've provided is in the correct format. If your return is rejected you must correct it and file it successfully. You must do that before the 19 May deadline to avoid having to pay a penalty. If you are unable to meet the deadline then you must file your return as soon as you can after 19 May to limit the penalty you will face for filing your return late.
There are a number of common errors to look out for when you file online - these are a frequent cause of returns being rejected. Follow the link below for a list.
Common errors to avoid when filing your annual return online
HMRC's P11 Calculator and also many commercial payroll software packages will let you make a test submission so that you can check to see if your return contains any issues to be fixed before you file it properly. If you choose to do a test submission don’t forget that you will still need to file a live return.
A test submission is subject to the same authentication and validation processes as a live submission.
If your test submission would have been successful if it was your real submission, you will receive the message below via your software provider:
Software - 9001: this submission would have been successfully processed if sent under non test conditions.
In addition to this message, if you have provided HMRC with an email address, you will also get a successful submission email. This says that if the submission was a test you still need to make a live submission.
Don't forget that you still need to file a live return after your test has been successful. If you are unsure if you have sent a test or a live submission you can check as explained in the next section.
When you file your Employer Annual Return online, the submission is received at the Government Gateway where an identity reference - called a 'correlation ID' - is attached. This allows HMRC to track the progress of the submission. Receiving the correlation ID does not indicate that the submission has passed the filing checks - just that it has been received at the Government Gateway.
Your submission is then sent from the Gateway to HMRC to be checked for errors and omissions, after which you will get an acceptance or rejection message through the software or service you use. If you've provided HMRC with an email address, you will also get an email message. These messages are usually issued within a minute of filing, but it can take longer if your return covers a large number of employees.
If you do not receive either an acceptance or rejection response, please contact HMRC's Online Services Helpdesk.
You are advised to take a screen print of any acceptance or rejection messages and keep a copy of any emails you receive.
If your return is successful, you'll get the following messages:
If your return is rejected, you'll get the following message instead:
You can also check the status of the submission by looking at the history on the ‘View, Print & Store submitted forms' page if using HMRC's Online Returns and Forms service or the ‘Online Submission’ tab if you're using Basic PAYE Tools.
Please note that the 'Last updated' or 'Last Modified' date given is the date the content of the return was last changed, not the date of submission itself.
Find contact details for HMRC's Online Services Helpdesk
If you file your annual return before 6 April (for example, because you've ceased being an employer), HMRC will still let you know straight away whether the return has been accepted or rejected. However, the return won't actually be processed for tax and NICs purposes until early April. Please remember to check carefully that the return you are sending is for the correct tax year. For example, if you are sending your return because you ceased being an employer on 10 May 2011, the return you must send (for the period 6 April 2011 to 10 May 2011) will be for the 2011-12 tax year.
You can file your forms P14 and your form P35 separately to HMRC. This might be useful if your payroll arrangements make it impractical to send the entire return at the same time - for example, if a payroll agent files your P14s for you but you file your P35 yourself.
Follow the link at the end of this section for more detailed information, but bear the following points in mind if you're considering sending your return in this way:
Read more about filing your P35 and P14s separately
If you have overpayments of PAYE from an earlier year you should not attempt to make any informal adjustments to your Employer Annual Return. The details entered on to the Employer Annual Return must correspond with the total amounts due shown on individual P14s.
In some circumstances adjustments can be made as part of the completion process, for example advance funding of Statutory Payments. If this is possible the online form clearly allows for that adjustment as part of the completion process.
Even if you've had a letter from HMRC regarding an overpayment you should not enter this on the Employer Annual Return. This letter explained that HMRC would transfer the same amount to your account for the current year. This action has already been taken.
If you need to amend your Employer Annual Return after you've sent it to HMRC you must take the following steps:
Sending amended information means that your original return was either incomplete or inaccurate and could mean that you may be charged a penalty.
Amended information doesn't have to be filed using the same format you used for your original return. For example, even if you used commercial payroll software to file your return, you could send an amendment using HMRC's free 'Online Return and Forms - PAYE' service.
If you use an agent to file your return, you must keep a written record confirming that the information they've filed on your behalf is correct. Any written confirmation - such as a letter or email - is acceptable.
You can download a sample form P35 to record and confirm the information you've agreed with your agent - but if you do this, make sure you don't send it to HMRC as they will then consider you to have filed on paper, and almost all employers are now required to file online. HMRC may therefore charge you a penalty for failing to file your return online if you send in this paper P35.
You don't need to keep a copy of the Employer Annual Return (P35 and P14s). But you do need to keep a copy of the records you used to prepare and file your return so that you are able to provide supporting evidence if HMRC asks for it.
If you file using the HMRC Online Returns and Forms service electronic records are automatically kept in line with normal PAYE record keeping rules. The guide 'Understanding and using PAYE for employers' gives more information.
Even if you keep paper PAYE payroll records you still don't have to keep paper copies of your Employer Annual Return (P35 and P14s). If you do wish to keep paper records you can download a copy of the form P35 and forms P14 to record the information you wish to keep.
Understanding and using PAYE Online for employers
Improving the operation of PAYE: Real Time Information (RTI)
Download Basic PAYE Tools from the Business Link website (Opens new window)
PAYE at the end of the tax year
Contact the HMRC Online Services Helpdesk
Check whether any service issues are currently affecting PAYE Online
