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Is no P35 return due?

I mentioned to someone i know who started a business in Feb11 that an annual return will be due by 19th May. They said there accountant hasn't said anything to them.

Having had a look online as they don't draw a wage so there is no p11 for payroll maybe they don't need to submit one but should they be submitting a note to say they have no return to submit?
Or as they have only been going a couple of months do they not need to do this yet?

Comments

  • easyhost
    easyhost Posts: 424 Forumite
    hwalkerh wrote: »
    I mentioned to someone i know who started a business in Feb11 that an annual return will be due by 19th May. They said there accountant hasn't said anything to them.

    Having had a look online as they don't draw a wage so there is no p11 for payroll maybe they don't need to submit one but should they be submitting a note to say they have no return to submit?
    Or as they have only been going a couple of months do they not need to do this yet?

    An Annual Return must be submitted regardless if you are taking a wage or not. if you are unsure call the HMRC helpline 0845 605 5999
  • hwalkerh
    hwalkerh Posts: 307 Forumite
    This is what it says on HMRC which indicates that if no one is drawing a wage then you don't need to complete a p35?

    "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."
  • Mudd14
    Mudd14 Posts: 856 Forumite
    As above there should be a nil return..... https://online.hmrc.gov.uk/shortforms/form/P35NilEmployer
  • Pennywise
    Pennywise Posts: 13,468 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Mudd14 wrote: »
    As above there should be a nil return..... https://online.hmrc.gov.uk/shortforms/form/P35NilEmployer

    Only if they've registered as an employer for PAYE. If they haven't registered, because they didn't need to, then there's no P35 to submit nor a nil return.
  • heretolearn_2
    heretolearn_2 Posts: 3,565 Forumite
    P35s are only relevant if you are registered as an employer with the HMRC and running a PAYE scheme. It's just part of the annual paperwork that relates to PAYE. If they aren't a PAYE scheme employer, then none of the PAYE stuff is relevant to them.

    It sounds as if they are a sole trader taking drawings only, if so, this is not applicable to them.
    Cash not ash from January 2nd 2011: £2565.:j

    OU student: A103 , A215 , A316 all done. Currently A230 all leading to an English Literature degree.

    Any advice given is as an individual, not as a representative of my firm.
  • Mudd14
    Mudd14 Posts: 856 Forumite
    Should learn to read the question a bit more carefully!
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