Online Filing of P35s
Discussion
I wonder if everyone is aware that by doing this online you currently receive £250 if you only have a small number of staff (less than 50 I believe?).
For the client in question I was entering a salary for the director only, at a level just before you start paying tax and national insurance. Once I got used to it I found it surprisingly easy to use for a government website. Though I imagine entering multiple employee details with tax and national insurance deductions would make it more complex.
Any additional forms you need such as P60's, P45's and P46's can also be filed online and printed out for your records.
I have been reluctant to jump to the governments tune regarding on-line filing of everything. I still think there are huge legal issues regarding client approval and certification which have not yet been ironed out. The system probably works out OK for filing your own paperwork but if you are an agent filing on behalf of someone out there are still large legal question marks.
Many businesses who filed their P35s on-line last year are still waiting for last year's £250 tax rebate. The Revenue FORGOT that not every business which is registered for PAYE actually has to pay over ANY PAYE. They thought that the £250 could be "refunded" by deducting it from the PAYE payable on 19 April. When a business has no liability due on 19 April they should receive a cheque for £250 from the Revenue. Many have not yet, 12 months on!!!!!
Many businesses who filed their P35s on-line last year are still waiting for last year's £250 tax rebate. The Revenue FORGOT that not every business which is registered for PAYE actually has to pay over ANY PAYE. They thought that the £250 could be "refunded" by deducting it from the PAYE payable on 19 April. When a business has no liability due on 19 April they should receive a cheque for £250 from the Revenue. Many have not yet, 12 months on!!!!!
Eric Mc said:
I have been reluctant to jump to the governments tune regarding on-line filing of everything. I still think there are huge legal issues regarding client approval and certification which have not yet been ironed out. The system probably works out OK for filing your own paperwork but if you are an agent filing on behalf of someone out there are still large legal question marks.
Many businesses who filed their P35s on-line last year are still waiting for last year's £250 tax rebate. The Revenue FORGOT that not every business which is registered for PAYE actually has to pay over ANY PAYE. They thought that the £250 could be "refunded" by deducting it from the PAYE payable on 19 April. When a business has no liability due on 19 April they should receive a cheque for £250 from the Revenue. Many have not yet, 12 months on!!!!!
Absolutely Eric. I haven't been able to deduct my £250 for last year ( I think it falls to about half this year and half again next year. I felt tempted to pay extra wages and extra tax just to reclaim the £250 but that sounded a bit perverse!
Online returns were a bit of a pain, but mainly in navigation. I also had problems knowing which NI letter to use and got racked of with having to enter up SSP, SMP etc when none applied (and of course making sure that I put the numbers in the right format (ie just £ or £.pp). The real pain was it kept saying I had errors when in fact I was just saving the old errors and what I should have ben doing was clicking 'another employee' to submit and move on. Then I remembered this caught me last year.
Lasy year they wrote 3 letters saying I had done it wrong. They knew what I had done wrong and sent me the paper form to correct it! But without telling me what I had to fill in and what the erors were. Result: it bounced back and forth. Common sense might have been to pencil in the figures for me to sign, or just put a 'X' where I had to enter data.
There were very few problems when you were able to deduct the PAYE refund from what you owed. The problems arose when there was no tax due. In that case, the Revenue should have issued a refund cheque for £250 to the employer. They had failed to anticipate this situation and were just not geared up to writing out cheques.
If you deducted the £250 from the PAYE due on 19 May (Month 1 of the 2005/06 tax year), the Revenue MAY assume you have underpaid yopur 2005/06 PAYE liabilities. You'll just have to wait and see how they handle the 20005/06 P35 submissions.
By and large, the accountants had done nothing wrong.
>> Edited by Eric Mc on Sunday 16th April 14:26
If you deducted the £250 from the PAYE due on 19 May (Month 1 of the 2005/06 tax year), the Revenue MAY assume you have underpaid yopur 2005/06 PAYE liabilities. You'll just have to wait and see how they handle the 20005/06 P35 submissions.
By and large, the accountants had done nothing wrong.
>> Edited by Eric Mc on Sunday 16th April 14:26
Eric Mc said:
There were very few problems when you were able to deduct the PAYE refund from what you owed. The problems arose when there was no tax due. In that case, the Revenue should have issued a refund cheque for £250 to the employer. They had failed to anticipate this situation and were just not geared up to writing out cheques.
If you deducted the £250 from the PAYE due on 19 May (Month 1 of the 2005/06 tax year), the Revenue MAY assume you have underpaid yopur 2005/06 PAYE liabilities. You'll just have to wait and see how they handle the 20005/06 P35 submissions.
By and large, the accountants had done nothing wrong.
>> Edited by Eric Mc on Sunday 16th April 14:26
I rang asking for a cheque. They said it was near impossible unless it ran into 2006/7 when I should fill in some special form they didn't have or know the reference number of (for which read; "you will wait a decade and have to spend £250 on phone calls).
Small claims court?
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