This guidance is for those employers who HM Revenue & Customs (HMRC) have agreed can send their PAYE information on paper.
Your Employer Annual Return for 2013-14 is due by 19 May 2014. This is the last Employer Annual Return you will need to complete.
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This is the last Employer Annual Return the majority of employers will need to complete. PAYE in real time (or RTI) reporting started on 6 April 2013 and, if HMRC have agreed you can send your information on paper, you will need to start sending your PAYE information to HMRC quarterly. HMRC will automatically send you the paper forms you need to complete.
Unless you are already reporting PAYE in real time, 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 tax or National Insurance contributions (NICs) from your employee(s) during the year.
The Employer Annual Return comprises of:
Your return must reach HMRC no later than 19 May 2014. If you don't do this HMRC may charge you a penalty that will continue to increase for each month or part month the return remains outstanding.
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. Doing this will prevent you receiving a late filing penalty if HMRC was expecting you to submit a return. To find out how, 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 get a copy by:
If you are a new employer claiming the NICs holiday, you must read this guidance in conjunction with the guidance on completing the NICs holiday end-of-year returns.
If you haven't had to maintain any forms P11 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 are an employer who began operating PAYE in real time in 2013-14 you must not notify HMRC that you have no return to make.
If you're an employer you'll need to provide:
You can notify HMRC that you have no return to make by calling the Employer Helpline or writing to the Employer Office. Please note however that you won't normally receive a written acknowledgement if you notify by these methods.
If you filed your Employer Annual Return before 6 April (for example, because you ceased being an employer),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 2013, the return you must send (for the period 6 April 2013 to 10 May 2013) will be for the 2013-14 tax year.
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.
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.
You don't need to keep a copy of the Employer Annual Return (forms P35 and P14). 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 kept paper PAYE payroll records you still don't have to keep paper copies of your Employer Annual Return (forms P35 and P14). 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.
Question six in Part three of the P35 Employer Annual Return - Are you a Service Company?
There is information about how to answer this question in the Employer Helpbook CWG2, Chapter 4, paragraph 124.
Follow the link below for more information about the Intermediaries Legislation, sometimes known as IR35.
Or you can phone HM Revenue & Customs' (HMRC's) IR35 helpline.