Employer end of year return (P35)

What other details go into a P35L?


2018 is the final year for which a P35 is required.

From 1 January 2019, the P35 is abolished in line with PAYE Modernisation.

For your current requirements, please see Employer obligations from 1 January 2019.

Medical insurance premium eligible for tax relief paid by employer

If you pay medical insurance as a benefit in kind (BIK), this field must be completed. The amount eligible for tax relief that should be included on the P35L and not the amount of the tax credit due.

Exclusion Order employee

This is for an employee whose full duties of employment are carried out abroad. The employee will be classed as non-resident for Income Tax purposes in that particular year. As the employer, you may request a Pay As You Earn (PAYE) Exclusion Order for the employee. The Order instructs you not to deduct Income Tax or Universal Social Charge (USC) from their earnings. You must apply to Revenue for the PAYE Exclusion Order on the employee's behalf.

Employee exempt from Pay Related Social Insurance (PRSI) in Ireland

This applies to employees who are exempt from paying PRSI in Ireland. While the employees are receiving payments in Ireland, they are covered for social insurance in another State. The PRSI exemption marker should not be used where a person is not required to pay PRSI for any other reason.

USC exemption

This marker applies if an employee is exempt from paying USC on their income. An employee whose income is under the threshold for paying USC must apply for a USC exemption.

Week 53

This applies when there are 53 weekly pay days in the year. This will occur when a pay day falls on either:

  • 31 December
  • 30 or 31 December (in the case of a leap year).

If an employee qualifies for 53 weekly, 27 fortnightly or 14 four-weekly pay days, the ‘Week 53’ indicator is to be selected.

Pension Related Deduction (PRD) refund

This occurs when an employee leaves your employment without accruing entitlements to pension benefits. The PRD applies to all public and civil servants. Such refunds are subject to income tax and employer PRSI. Neither USC nor employee PRSI applies to a PRD refund.

Pension tracing number

This is applicable if you operate an approved occupational pension scheme. This process will generate a Pension Board reference number, which should be entered on the P35L. This will allow prospective retirees to trace pension entitlements from various employments during their careers.

Pay frequency at 31 December

This is the employee’s pay frequency that was in place at 31 December. It can be weekly, fortnightly, four-weekly, monthly or other.

Next: What benefit information goes on a P35?