Latest News

October 2011

Employers told to make P35 returns more accurate

Employers are being urged by HMRC to get their PAYE paperwork in order, after more than 500 returns incorrectly claimed to employ “A N Other” in 2009/10.

Every year, employers send PAYE data to HM Revenue & Customs (HMRC), which gives details of employees’ tax and national insurance contributions. However, it is not always accurate. This can cause problems for the employee, for example, incorrect amounts being deducted from their pay. It can also use up valuable employer and HMRC time and money putting the error right.

As well as 507 A N Others, employer returns for 2009/10 revealed the following incorrect information:

* 128 staff entered as Mr, Ms or Mrs “Dummy”
* 572 people whose surnames only included the letter X, ranging from Mr X to Mrs XXXXXX
* 75 staff with the surname “Casual”, 11 “Cleaners”, 9 “Workers” and 6 “Students”
* 824 employees with the surname “Unknown” and
* 40 people were apparently 200 years old or more after incorrect dates of birth were submitted.

Jim Harra, HMRC’s Director of Customer Operations, said:

“Most employers get their PAYE returns right. The few who don’t can cause problems for their employees, for example, incorrect deductions of tax. Around 80 per cent of errors in employee data are due to an incorrect name, date of birth or national insurance number – straightforward information that can be collected and checked quite easily.

“So, whether you are employing ‘Mr or Mrs J Smith’ – or even ‘Mr or Mrs A N Other’, please use the full and official name on your PAYE paperwork. First names are very important, especially for common surnames.

“We really want employers to check that they are sending us the right details for all their employees, to make life easier for them, HMRC and their employees.”

If you need any help with your year end returns, please contact me.