SEARCH, INDEX, UPDATES, CONTENTS, SERVICES, TAX COMPLIANCE, P35, P9d, P11d
These are an Annual PAYE Summary and Returns of Benefits and Expenses.
Form P35 is a summary of deductions from employees and remittances for the year to 5 April showing any balance outstanding. It has to be submitted to the local tax office with forms P14 by the 19 May with automatic penalties for late submission. Interest is charged on all tax outstanding from 19 April.
Form P35 includes a declaration that all forms P9d and P11d have been or will be submitted by 6 July.
Forms P9d and P11d are similar, but with important differences. Forms P9d report expense payments and benefits for employees who are not directors and earned at a rate of less than £8,500 p.a., form P11d applies to all other employees. Examples of the differences are that a holiday provided by an employer (unless booked by the employee) does not normally have to be reported on form P9d, but does if form P11d applies; an interest free loan is not normally a benefit to a P9d employee, but is to a P11d employee.
Any bill paid for an employee will normally be a benefit. For more detail see expense payments.
The penalties on an employer for incorrect completion of form P11d are up to £3,000 per employee for each year.
For the year to 5 April 2001 and later years, Class 1a National Insurance is due on any benefits reported on form P11d. The declaration of Class 1a National Insurance is on form P11d(b) which has therefore technically become a National Insurance return. As such it has become subject to an automatic late filing penalty if it is not received by the Inland Revenue by 6 July. For this first year only, a 'period of grace' will be allowed for returns filed by 19 September. This has not been publicised.
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