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The Book-keepers Forum -> VAT, Payroll & Tax -> P35 for a CIS Contractor
Post Info TOPIC: P35 for a CIS Contractor
woody88


Senior Member

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P35 for a CIS Contractor
 

Afternoon all,

I have received conflicting advice as to whether a client needs to submit a P35 for the Year Ended 05.04.2012. They only employ subcontractors and I have been submitting their monthly CIS Returns online to HMRC for the whole year.

When I rang HMRC they stated that we need to submit a P35 too, whereas when I rang MoneySoft they said that they did not need to as the monthly returns have all been submitted already. They also advised that you need to have at least one employee in order to submit a P35 online.

Conussed now, has anybody got a definitive answer on this one?

Ben



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Stuartbham


Senior Member

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Date:
 

Hi Ben

Don't fancy working on the MoneySoft helpline today, must be manic!

I've got a similar issue Ben, so if you manage to resolve it can you let me know. 

The joy's of payroll season! hmm



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Stuart

Birmingham City FC - Blues is my religion St Andrews is my church

Bucks Bodger


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Ben

I had the exact same thing, had a client with no employees but who had made deductions
from Sub-Contractors and sent in his returns every month.

This is the email I got in response to my enquiry to the Employer Helpline :

Dear Sir/Madam



Thank you for your recent email.



If you are only registered as a contractor then you have no requirement to complete a P35 employer annual return. You will complete monthly CIS returns.



Yours faithfully,




Employer Helpline

www.hmrc.gov.uk


I think my Client (and yours) should have had a "Contractor only" PAYE scheme set up, not a full one
(although having said that, I don't know that the PAYE scheme my client has is a full one, it might
only be a Contractor only scheme, I'm not sure how you can tell the difference.)

I will just add that I did also submit a Nil return, using the structured email on the HMRC website (before I received
the above reply).

Hope this helps.

Eunice

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Tom McClelland


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Date:
 

You can only file a P35 with no P14s on it if you are claiming an offset against client CIS deductions. I think this usually only applies to Ltds that are themselves subcontractors.

You don't need to file one if you don't have any employees and you aren't suffering CIS deductions yourself.

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Tom McClelland


Senior Member

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Posts: 319
Date:
 

woody88 wrote:

Afternoon all,

I have received conflicting advice as to whether a client needs to submit a P35 for the Year Ended 05.04.2012. They only employ subcontractors and I have been submitting their monthly CIS Returns online to HMRC for the whole year.

When I rang HMRC they stated that we need to submit a P35 too, whereas when I rang MoneySoft they said that they did not need to as the monthly returns have all been submitted already. They also advised that you need to have at least one employee in order to submit a P35 online.

Conussed now, has anybody got a definitive answer on this one?

Ben

That is incorrect. A P35 with no P14s on it is acceptable to HMRC if the company filing it suffered CIS deductions itself.



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Don Tax


Guru

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Posts: 1296
Date:
 

Well this is pretty tricky.

You have to file a P35 if you have sub-contractors.
Oh no, you can't file a P35 if you've got no employees.
But you can if you've got the correct variety of PAYE Scheme
'cept no-one knows what one looks like.
You must if you need to offset against CIS deductions suffered,
but only if you're a limited company
So what about the others?

No wonder Revenue software never comes in under budget.

Why all the hoops to jump through?
Why not simply allow a nil P35 to be filed so any contractor/employer can sleep at night? Too easy right.






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woody88


Senior Member

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Posts: 227
Date:
 

Cheers for the answers everyone.

The muck seems like a shade lighter then black now!

Good old HMRC and a great motto to boot 'tax dosen't have to be taxing'. Really... I wonder if they really believe or buy in to this. I guess it keeps us all employed though!

Ben



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