Guidance for exempt employers: filing your annual return on paper

Almost all employers are now required to file their Employer Annual Return (form P35 and forms P14) online. However, a small number of employers aren’t covered by this requirement and can still file their return using paper forms.

This guide lists the types of employer that can still file the Employer Annual Return on paper and explains where to go for step-by-step guidance on filing in this way.

Please bear in mind that even if you aren’t required to file your annual return online, you can still choose to do so - unless you are specifically excluded (see section ‘Who must file on paper?’ below). Many exempt employers file online because of the greater speed and convenience it offers.

On this page:

Who can still file either online or on paper?
Who must file on paper?
Where to find guidance on paper filing
Penalties for using the wrong filing method

Who can still file either online or on paper?

Only the following groups still have the option of filing their return either online or on paper:

Employers with fewer than 50 employees who cease paying PAYE during the 2009-10 tax year and file their return for that year by 5 April 2010
Employers entitled to operate PAYE using HMRC’s simplified deductions scheme for domestic employees (using forms P12 and P37) – provided they haven’t previously received a tax-free payment for online filing
Practising members of religious societies or orders whose beliefs are incompatible with the use of electronic methods of communication
Employers who employ someone to provide care or support services in or from their home. The following four conditions must be met for this option to apply:

the care or support services must be provided to the employer or a member of their family
the recipient of the services must have a physical or mental disability, or be elderly (aged 65 or over) or infirm
the employer cannot have received a tax-free payment in respect of online filing for the preceding three tax years
the employer must file their return themselves, not have someone else (such as a relative or accountant) file it on their behalf

If you are in category (c) or (d) and wish to file on paper, you must write to your HMRC office with full details of your circumstances. Our records for you can then be updated and it will avoid your receiving a penalty notice for not filing your return online.

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Who must file on paper?

The following groups must file on paper:

employers and certain employees who have special arrangements with HMRC for the direct collection of PAYE tax and/or National Insurance
employers whose business is a limited company and the only information you’re submitting is an entry in Box 28 (‘CIS deductions suffered’) of form P35 relating to payments received for work in the construction industry

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Where to find guidance on paper filing

You’ll find step-by-step guidance on completing your annual return using paper versions of forms P35 and P14 in HMRC’s Employer Helpbook E10, ‘Finishing the tax year’.

You can download Employer Helpbook E10 in PDF format from the HMRC website. Or you can place a telephone or online order with their Employer Orderline and a paper copy will be sent to you.

Download Employer Helpbook E10, ‘Finishing the tax year’

Go to the HMRC Employer Orderline

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Penalties for using the wrong filing method

If you file your Employer Annual Return on paper when required to file online, HMRC may charge you a penalty.

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