Do I need to return a P35

[ittony]

I started contracting though my own new limited company a few months back but in order to build up some working capital I have yet to extract any money as salary, expenses or dividends. I haven't registered myself as an employee yet, although I did return a couple of nil slips from the yellow payslip booklet in January and April after the revenue told me that I was meant to have done so. So, my question is this: do I now need to return a P35 for the 2006/2007 tax year? Is there anything else I need to return to HMRC pertaining to that tax year, that is apart from the corporation tax return which I gather doesn't need to be looked at until some time after company accounting period end date.

Thanks, T.

[Kyajae]

do I now need to return a P35 for the 2006/2007 tax year?

Er, yes.

[Crossroads]

do I now need to return a P35 for the 2006/2007 tax year? Is there anything else I need to return to HMRC pertaining to that tax year, that is apart from the corporation tax return which I gather doesn't need to be looked at until some time after company accounting period end date.

You REALLY need to get some professional advice. Lots of pitfalls for you with the current working arrangements...

[ittony]

You REALLY need to get some professional advice. Lots of pitfalls for you with the current working arrangements...

What do you mean by that? Whose current working arrangements?

[ittony]

Er, yes.

Er, thanks. Care to elaborate a little?

A revenue booklet I have says that I must file P14s and P35 if I have had to maintain a P11 Deductions Working Sheet or equivalent record for at least one employee during 2006-2007. But the company has had no employees during that year and I haven't had to maintain any such working sheet. Are you suggesting there must be other factors which necessitate a P35?

[Kyajae]

What do you mean by that? Whose current working arrangements?

a) Chase HMRC to ensure they have you registered as self employed
b) Register with HMRC a.s.a.p. to do your P35 and P14 / P11 online - it's a sh1t load less hassle and the HMRC give you a £250 pay back incentive to do it online.
c) When your registered to fill your returns online, you do get email alerts from HMRC reminding you of deadlines for the various submissions that need to be done.

[Crossroads]

What do you mean by that? Whose current working arrangements?

- You are an employee of your Ltd, but not being paid NMW.
- You are not keeping up with PAYE obligations (even if Nil returns) until HMRC chase you.
- You don't appear to be clear on the CTax and Company Tax Return obligations.
- You've paid no salary, but what about any BiK's? Has the company paid for anything?
- What else might you have missed?

Not criticising you, but for the £750/year or so an accountant is going to charge you, he/she is going to make all these questions & problems go away.

[ittony]

a) Chase HMRC to ensure they have you registered as self employed
b) Register with HMRC a.s.a.p. to do your P35 and P14 / P11 online - it's a sh1t load less hassle and the HMRC give you a £250 pay back incentive to do it online.
c) When your registered to fill your returns online, you do get email alerts from HMRC reminding you of deadlines for the various submissions that need to be done.

Thanks Kyajae, but what on earth to you mean by register as self employed? I'm running a limited company, not working as a sole trader.

As for online returns, I've already got all that up and running but I don't want to be submitting an online P35 and be seen to be claiming a pay back incentive to which I am not entitled, if it turns out I shouldn't have been filing a P35 in the first place, given that I've got nothing to put on it.

[ittony]

- You are an employee of your Ltd, but not being paid NMW.

I am a director, directors do not need to draw NMW.

- You are not keeping up with PAYE obligations (even if Nil returns) until HMRC chase you.

I only missed the first one which was barely weeks after I established the company. But yes, missing deadlines is something to be avoided I agree, hence my original question.

You don't appear to be clear on the CTax and Company Tax Return obligations.

I'm trying to learn. I thought I might find some like-minded individuals round here.

You've paid no salary, but what about any BiK's? Has the company paid for anything?

No, no money has left the company bank account yet, no money had arrived in it until the last month or so. As I said I wanted to get some invoices paid first, build up some working capital so that I could pay myself a regular monthly salary without fear of going overdrawn.

What else might you have missed?

Good question. Anyone?

Not criticising you, but for the £750/year or so an accountant is going to charge you, he/she is going to make all these questions & problems go away.

And I do not wish seem ungrateful (I am - thanks) but I am led to believe that it is entirely my own responsibility that these things are done properly, and my own liability if they are not, and in my book that means I need to understand it all myself.

[Bigbird]

You need to send in a "Nil" P35, and you can't do it online.

Just write "NIL" across the bit where you would normally put the employee details, stick a 0.00 at the bottom, tick all the boxes and sign it.