End of the tax year
End of year pay figures (2018 and previous years)
The information on this page refers to your obligations before 1 January 2019. For your current requirements, please see Employer obligations from 1 January 2019.
You must complete the Form P35 at the end of each year, including 2018.
On the employee's payroll record for the year will be entered the amount of:
You must not include pay from previous employments in the cumulative pay for the end of year figures on the Form P35.
An employee might have separate periods of employment with you during the year. If so, you must include the total pay for all these periods on the Form P35.
End of year tax and USC figures
The end of year figures for tax and USC deducted are the total tax and USC deducted by you. These figures do not include any refunds of tax and USC deducted in another employment. If these refunds exceed the tax and USC deducted by you, the net amounts refunded should be shown.
An employee might have separate periods of employment with you during the year. If so, you must include the total tax and USC deducted for all periods on the Form P35.
Errors discovered at the end of the year
The final figures for tax and USC for each employee should equal the total tax and USC figures you have deducted. If you find a difference between these figures, you must enter the amount actually deducted as the final figure. If you have not deducted enough tax or USC, you cannot recover it from the pay of a later year. You must pay the tax and USC due unless you can show that reasonable care was taken, and the error was genuine.
‘Week 53’ occurs when there are 53 weekly, 27 fortnightly or 14 four-weekly pay days in the year. This can happen if a pay date falls on 31 December or, in a leap year on 30 or 31 December. It does not affect monthly-paid employees.
You must set tax credits, tax and USC cut-off points against that payment on a week 1 basis. Where the employee is taxed on emergency basis, you use the same basis in week 53. Ensure that the week 53 indicator is ticked on the P35L and on P60s for the employees concerned.
Next: End of year returns (for 2018 and previous years)