Really dumb urgent Q- do CIS contractors have to file P35 if no e'ees only subbies?

Monsoon

Sorry, this is a really dumb question - do CIS contractors have to file a P35 if they have no employees, but only have subcontractors?

If so, I need to do a P35 pronto!!

Monsoon

My software won't allow me to file a P35 - it sees it as Nil, even though I've entered an amount due in the "deductions from subbies" section. Think I will use the nil P35 notification facility - the CIS returns have gone in every month.

TheAbacus

The answer used to be no, BUT, as the contractor will have a PAYE reference the following from HMRC website might apply:

If you haven't had to maintain at least one form P11 during the tax year
In this case you don't need to complete an Employer Annual Return but you do need to tell HMRC that you won’t be sending one in. To find out how to do this, read the later section ‘Notifying HMRC if you have no Employer Annual Return to make’

I got cought out last year with several penalties for not submitting a P35 when there were no instructions for submitting a Nil P35. There was a sentance on the website about "telling HMRC" but no details how to.

All the penalties were cancelled and I have just noticed the above paragraph has been expanded this year and it links to a new form for submitting a Nil P35. I'm not sure if this applies to CIS only contractors but have a look at:

http://www.hmrc.gov.uk/paye/payroll/year-end/annual-return.htm

There will be no harm in a Nil P35 and it might stop the unnecessary penalties.

jow774

As its an emergency one (19th tomorrow) and you cant file a nil one the normal way, try this. You probably already know about it, but just incase here it is:-

https://online.hmrc.gov.uk/shortforms/form/P35NilEmployer?dept-name=&sub-dept-name=&location=1&origin=http://www.hmrc.gov.uk