Deadline for certain employers operating the Intermediaries (IR35) legislation

14 January 2014

Employers who submitted a provisional P35 for 2012 to 2013 and paid tax/NICs on account in line with the special rules for intermediaries have until 31 January 2014 to submit an amended P35 and pay any additional tax/NICs due.

HMRC has published a reminder regarding the deadline for certain employers operating IR35 legislation, which reads as follows:

IR35 - Deadline for Full Returns and Payments

The normal end of year payment actions apply to Pay As You Earn (PAYE) and National Insurance Contributions (NICs) arising on a deemed employment payment made under the Intermediaries (IR35) legislation. The total PAYE and NICs for 2012-13 was therefore due to be paid by 19 April 2013 with a completed P35 submitted by 19 May 2013.

However special rules apply if intermediaries were unable to finalise the calculation of the deemed payment 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 intermediaries 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 HM Revenue & Customs (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 does 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.