Employers time to file your P35

If you employed staff in 2015 you need to file a P35 form. The P35 form gives details of all tax deducted from your employees during the year. Specifically it details all Income Tax, Employers and Employees PRSI and the Universal Social Charge. The form should include the names and details of all employees who worked for you during 2015, even those who are no longer working for you.

Mistakes to look out for

When a balancing payment is submitted with the P35 return (i.e. because you have not paid your P30 returns during the year) and it exceeds 10% of the PAYE/PRSI/USC/LPT liability due for the year, Revenue may charge interest on this balance. It is important to keep on top of your P30 returns during the year, to avoid a large balancing year end payment.

Another common error businesses make with their P35 Return is using the wrong PPS numbers for Employees. If a PPS number is invalid, the P35 Return will be rejected by the Revenue Commissioners so it’s a good idea to check all employees PPS numbers well in advance of the submission date.

Obligation to provide P60’s to staff

As well as submitting the P35 form it’s important to note that as an employer you are obliged to provide a P60 to all staff who were in your employment on 31st December 2015. Anyone who left before this date does not need a P60 from you, as you would have already provided them with a P45. The P60 details the employees Gross pay and taxes deducted.

When is the deadline?

The deadline to do this is Monday 15^th February, alternatively if you are filing and paying online through ROS the deadline is extended to Tuesday the 23^rd February.

What happens if I don’t file on time?

Employers who don’t submit a P35 return by the deadline could face penalties of up €5,000 and you may also risk a possible tax audit. Interest can also apply on late payments.  

Your accountant can assist you with filing the return in advance of the deadline. If you use a payroll software package the information can be exported from this and uploaded directly to Revenue Online Service (ROS).

Date published 5 Feb 2016

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.