If you are required to file your Employer Annual Return online and you use substitute paper forms you might be charged a penalty.

HM Revenue & Customs no longer produce or provide the P35 - Employer Annual Return form.

The option P35 Print does not actually print directly on to an HMRC P35 – Employer Annual Return form but produces a report as a List of Deductions Working Sheets containing the information required to complete the form.

There are no changes to the calculations or printed format of the List of Deductions Working Sheets produced via the option P35 Print from the previous tax year.

The NI (National Insurance) column shows the employer plus the employee NI, minus any employer and employee NI rebate.

The List of Deductions Working Sheets utilise the figures in the P14 Details tables (table names: py_p14_details (pyp14det.m) and py_p14_details_1 (pyp14d1.m)), i.e. manually entered P14 figures, for each employee in a selected payroll, as follows:

• Where an employee record is on file in the selected payroll with the same NI number (NINO) as an employee in the same company but in a different payroll – the employee's figures in the P14 Details table are EXCLUDED from the List of Deductions Working Sheets for the selected payroll.
• Where an employee record is on file in the selected payroll with a blank record in the P14 details table, i.e. only the Employee code and payroll Year is defined for the employee in the P14 Details table – the employee is OMITTED from the List of Deductions Working Sheets for the selected payroll.
• Where an employee record is on file in the selected payroll with figures in the P14 Details table – the employee's figures in the P14 Details table are used for the List of Deductions Working Sheets for the selected payroll INSTEAD of the cumulative figures in the Year to Date table.

There are changes to the calculations for and printed format of the List of Deductions Working Sheets produced via the option P35 Print, as follows:

• The SPP column becomes the payments made for Ordinary Statutory Paternity Pay (OSPP).
• With the introduction of Additional Statutory Paternity Pay (ASPP), a new print form has been made available (py, p35_print, print_form_2011) with suspended fields to record Additional Statutory Paternity Pay (ASPP) payments (aspp, cumulative_aspp, page_aspp, sub_aspp, total_aspp, total_aspp_rec). These fields can be unsuspended if required.

The NI (National Insurance) column shows the employer plus the employee NI, minus any employer and employee NI rebate.

The List of Deductions Working Sheets have been updated to utilise the figures in an additional P14 Details table. From 2011 they will utilise the figures in three P14 Details tables, table names: py_p14_details (pyp14det.m), py_p14_details_1 (pyp14d1.m) and py_p14_details_2 (pyp14d2.m), i.e. manually entered P14 figures, for each employee in a selected payroll, as follows:

• Where an employee record is on file in the selected payroll with the same NI number (NINO) as an employee in the same company but in a different payroll – the employee's figures in the P14 Details table are EXCLUDED from the List of Deductions Working Sheets for the selected payroll.
• Where an employee record is on file in the selected payroll with a blank record in the P14 details table, i.e. only the Employee code and payroll Year is defined for the employee in the P14 Details table – the employee is OMITTED from the List of Deductions Working Sheets for the selected payroll.
• Where an employee record is on file in the selected payroll with figures in the P14 Details table – the employee's figures in the P14 Details table are used for the List of Deductions Working Sheets for the selected payroll INSTEAD of the cumulative figures in the Year to Date table.

There are no changes to the calculations for, or printed format of, the P35 - Employer Annual Return from the previous tax year, however as the tax year is printed on the P35 - Employer Annual Return, 2010-11 forms will be required from HM Revenue & Customs for submission.

The section Part 2 Summary of payments for the year includes the field Tax-free Incentive payment received during the year – this field only applies to small employers that filed their end of year returns electronically in a previous tax year and received their Incentive payment directly by cheque during the current tax year.
This amount is therefore NOT printed on the List of Deductions Working Sheets produced via the option P35 Print.