P9 coding notices and employers with no P14s to file

Thursday, March 24th, 2011

The following is an extract from the latest weekly informal update (dated 18 March) from HMRC to employer representatives.

1. Issue of P9 Coding Notices to employers

As we told you in last week’s update, we issued the bulk of P9s electronically by 11 March.  Indications from both employers and individual customers suggest that accuracy levels are much higher than last year and this is borne out from the positive feedback already received from some of you.  This is very encouraging and reflects well on everyone’s efforts to improve the quality of data.

The first paper P9 Coding Notices from the main batch should arrive with employers this week and we expect the remainder to reach employers by the middle of next week.  A small number of both electronic and paper P9s from our final supplementary batch will be issued from Monday 21 March up until the start of the new tax year.  These are cases we have held back for additional checking or where the customer has recently contacted us to give additional information to amend the code.  Some of these P9s may arrive too late to be applied to April payroll.  If you do not receive P9 Coding Notices for some of your employees in time for your payroll run, please use the usual P9X procedure for them.  You can find the 2011 P9X (Tax codes to use from 6 April 2011) at http://www.hmrc.gov.uk/helpsheets/2011/p9x.pdf.

2. No Employer Annual Return (P35 and P14s) to make for 2010/11

Employers who have a ‘live’ PAYE scheme but haven’t had to complete a P11 deductions working sheet during the tax year are not required to send us an Employer Annual Return.   But they must tell us they have no return to make so that we can update our records and prevent unnecessary reminders and penalty notices.

Last year we introduced two structured email forms, one for employers and one for agents to tell us that they had no return to make for 2009/10.  We received approximately 162,000 notifications during the year.  On 11 March we published two new forms on the web so you can now tell us about 2010/11.  And we have already received over two thousand forms since it went live. We confirm by email when we receive the notification and we send a further email to tell you when we have updated our records for you.

We can’t begin to process the forms until after 5 April and it will take us some time to process all the forms we receive, so please bear with us if you do not receive the second email quickly.  There is no need to contact us about your form – we will send you the second email or contact you when we process it.

If you do use this facility, can we please ask you check carefully that the PAYE employer reference you enter is correct.  We did receive a number of forms last year which contained an incorrect reference which makes it extremely difficult for us to process your claim without having to contact you.  If you are in any doubt about the reference you are entering it will be shown on the P30B payment booklet or on the electronic PAYE reminders we send out each year.

To use the forms and for further information go to www.businesslink.gov.uk/noemployerreturn

Further information:

HMRC Update 55

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