PAYE47035 | Employer returns: employer return - overpayments: form P35D

From HM Revenue & Customs · PAYE Manual

Purpose

If you need to contact the employer or contractor to establish the reason for an overpayment, form P35D should normally be used.

Action prior to issuing P35D

The form requires you to complete the following information taken from the return

Tax Year
Total paid including any Tax-Free Incentive payments awarded
Amounts due

Total Income Tax
Total NICs after adjustments
Total Student or Postgraduate Loan Deductions
SSP / SMP / SPP / SAP funding from HMRC for years up to and including 2010 to 2011
SSP / SMP / OSPP / ShPP / SAP funding from HMRC for years from 2011 to 2012 up to and including 2019 to 2020
SSP / SMP / OSPP / ShPP / SAP / SPBP funding from HMRC for years 2020 to 2021 onwards
Tax Credit funding from HMRC

Deductions shown on P35

Statutory payments recovered
Total Tax Credits paid to employees
CIS deductions suffered

Amount due per form P11D(b) if applicable
Apparent overpayment

Employer / contractor responsibilities

The form asks the employer or contractor to

Consider whether any information was omitted from the return, and if so, to provide this by sending the additional information to you
Or
Where the employer / contractor believes that the end of year return is correct, supply an explanation for the apparent overpayment

Note: If an employer tells you that they have paid Working Tax Credit after 31 March 2006 and / or has carried forward Tax Credit Funding into 2006 to 2007, you should advise the employer to contact the Employer Helpline on 0300 200 3200 (text phone 0300 200 3212).

Exceptions

There may be situations where the wording on form P35D is inappropriate. Examples may include

An employer who has ceased in business
Return types other than P35
Or
You may wish to include interest or surcharge for late payment in your calculation

In these circumstances a letter on the lines of form P35D should be issued instead, amended as appropriate.