Every year employers have to send in a yearly reconciliation of what tax and National Insurance they have deducted from employees with what they have paid over to Revenue & Customs. It is called a P35. It has to be sent in to them by 19 May or else there is a fine which for most small employers is £100 per month of delay.
Last year many businesses got fined £400 because no-one from Revenue & Customs warned them they were racking up a penalty. This year the Revenue is becoming more customer friendly and will send out reminders from 28 April 2012, where HMRC thinks there are outstanding P35s for the year.
From 31 May 2012, the Revenue will introduce a “P35 Interim Penalty Letter” that will go to employers within a month of the filing deadline. The letter will tell employers they have incurred a late return penalty and explain what to do to avoid it increasing.
The fines are the same so don’t leave it too late. The simplest solution is to do everything online. Then you know straight away if you have done anything wrong on the form. Or you could ask an accountant!
