This note covers periods up to 2013-14 and employers who are not submitting under RTI in 2014-15.

Under Real Time Information reporting (RTI) employers do not have to submit returns P35 and P14 online.

Deadline for PAYE annual returns P35 and P14 online is 19 May 2014.

If an employer has registered for PAYE but not paid any employees then it needs to notify HMRC that no annual return is due. Otherwise HMRC may issue a penalty and there will be time wasted in appealling it.

Penalties for late PAYE returns

This is slightly confusing: despite a massive overhaul of penalties in recent Finance Acts (see Tax penalties: late filing) PAYE annual returns are still under the old penalty regime.

PAYE Annual returns

  • For PAYE Annual Returns due the late filing penalty is £100 per month or part for up to 5 employees, £300 for 6 to 49 employees, £600 for 50-249 employees and then £300 for each 100 employees.
  • HMRC will write to employer before 19 June to advise them that no return has been received, it must be filed before 19 June in order to avoid higher penalties.
  • You may appeal against a late filing penalty

For those under Real Time Information Reporting see Tax penalties: RTI (Real Time Information)