31st January Deadline for P35

Amended P35s due by end of this month

Although 31st January is commonly associated with the online filing deadline for Self Assessment Tax Returns it is also the deadline for contractors to submit amended forms P35, where appropriate.

Special rules apply if PSCs were unable to finalise any deemed payment calculation in time. Provided a payment on account of the estimated tax and NICs for 2012-13 was made by 19 April 2013 supported by a P35 showing provisional figures, then freelancers have until 31 January 2014 to submit amended returns showing the final figures and to pay any additional tax and NICs due.

In these circumstances, interest will be charged on late payments made after 19 April 2013 (when the original payment was due) but no penalties will be charged if:

• the original P35 and relevant P14s were received by 19 May 2013 with part 2 of question 6 on the P35 answered ‘Yes’ and showing remuneration paid during the year plus an amount on account of the deemed employment payment with tax and NICs correctly calculated, and
• an amended P35 and accompanying documents notifying the correct final amount for the deemed employment payment and the tax and NICs due is sent to HMRC by 31 January 2014, and
• any additional tax and NICs due as a result of the amended P35 is paid by 31 January 2014

If HMRC do not receive an amended P35 and balancing payment by 31 January 2014 the original P35 will be considered to reflect figures which the employer declares to be final and correct.