The end of the annual P35 checklist

HMRC is to remove the requirement for employers to complete the end of year P35 checklist when making their final RTI return. How and when will this take effect?

HMRC is to remove the requirement for employers to complete the end of year checklist when making their final RTI return. How and when will this take effect?

In December 2014 HM Revenue & Customs published information stating that legislation will be introduced to remove the requirement for employers to complete the old P35 end of year checklist in their final RTI return. This is to takes effect from 6 March 2015 for the 2014/15 tax year onwards.

Whilst HMRC has confirmed that its systems will allow final RTI returns from 6 March 2015 without the P35 questions, its own Basic PAYE Tools software will not be updated until July 2015, meaning that the information will still need to be completed. It’s also possible that payroll software for 2014/15 will not have been updated in time so the information may still need to be completed.

If your payroll software does need the information to be added, it should be completed and reported accurately. Regardless of whether the checklist is completed, the “final submission for year” indicator should still be ticked.

It is hoped that these changes will help to reduce the administrative burden and to simplify the end of year procedures.  If you have any queries please contact Corey Lavender our Payroll Manager, for more details.