The P35 deadline is creeping up on us fast, the date for returning your annual P35 return on time for the year ended 31st December 2011 is the 15th February 2012. However for those of you who wish to file their return online using Revenue Online Service (ROS), the deadline is extended to 23rd February.
Employers and agents are strongly reminded of the importance of the correct recording of PPS numbers for each employee on their returns. This is so the Revenue and Department of Social Protection can ensure that all employee details are stored correctly on their system. The PPS numbers to be included in the P35 should correspond to the most recent Tax credit cert which would have been issued to you by the Revenue.
On occasion the situation may arise where you have an employee who has a PPS number but hasn’t yet received a tax credits cert from the Revenue, not to worry; this simply means that the individual is not registered with Revenue for their current employment yet. In order to rectify this and before this employees details are submitted to Revenue on the P35, you should notify the appropriate Revenue district of the employees name, address and PPS number in order to register them as employed and to receive a tax credit cert for them.
When the tax credit certificate is received for that person, details of their pay, tax and PRSI can now be included on the P35 return. However, if you have already filed the P35 excluding that employees details, you are obliged to file a supplementary P35 for that employee. The supplementary P35 can also be used to amend mistakes or change the details relating to an employee whose details have already been returned.
Failure to submit your P35 on time may result in a penalty of €1,000 for each month or part of the month in which the P35 remains outstanding (subject to a maximum penalty of €4,000). Additionally you are always putting yourself at risk of a revenue audit if you don’t file on time.
Don’t pay the tax man more than you have to in the way of penalties for simply being late, file on time or seek professional advice.
Post by Aonghus Sammin. For more information visit www.bradanconsulting.ie