When do I need to submit my Employer Annual Return and why is it important?

It’s the end of the tax year, so here’s a timely reminder to submit your Employer Annual Return including P14 and P35, by May 19.

Why is it important? 

As a business owner in the UK, submitting accurate and timely payroll information is a key element of ensuring your company operates legally. Two essential documents to submit to HM Revenue and Customs (HMRC) are the P14 and P35.

The P14 is an annual summary of the pay and deductions you have made for each employee throughout the tax year, while the P35 is a summary of the total payments and deductions made during the year. Both documents are due by May 19th following the end of the tax year (which runs from April 6th to April 5th of the following year).

Here are a few reasons why it's important to submit your P14 and P35 forms on time:

Compliance with HMRC 

Submitting accurate payroll information on time is a legal requirement. If you fail to comply with the requirement you could face penalties and fines from HMRC.

Accurate employee records

The P14 and P35 forms help to maintain accurate records of employee pay and deductions, which can be used to resolve any disputes that may arise between your employees and you as their employer. 

Tax liability calculation

HMRC uses the information provided in the P14 and P35 forms to calculate the amount of tax and National Insurance contributions that are owed by you as the employer. Accurate submission of these forms can help to ensure that the correct amount of tax is paid, and avoid any future problems that may crop up due to incorrect calculations.

Continuity of employment

Precise payroll information can help to maintain the continuity of employment for your employees. This can be particularly important for employees who want to access statutory entitlements such as maternity pay, sick pay or redundancy payments.

So, submitting accurate and timely payroll information is essential for any business operating in the UK.

The P14 and P35 forms provide a clear record of employee pay and deductions, and can help to ensure compliance with legal requirements.

It's important to stay on top of your payroll obligations and submit your return by May 19th.

How can I make submission of my Employer Annual Return easier?

Annual returns require significant management attention and resources, but there are ways that you can ease the collation of the data needed for your return.  

For example, expense management software providers offer a built-in facility that enables your staff to submit expense claims via an app. This means that the reconciliation process, and subsequent Return, is made smoother and quicker. These platforms integrate seamlessly with accountancy software packages to reduce the effort required. 

By using an expense management provider, such as Expend, you can tailor the settings to meet the needs of your business. And, with all the information in one place, there’s less chance of data getting lost and the accounts department spending unnecessary amounts of time chasing up missing receipts from employees. It also means that the relevant expenses data is sent to your company accountant in one migration. 

Disclaimer: This is not legal, accounting, or tax advice - it's simply a guide. If you need help, check with your accountant or contact HMRC directly.