04: Annual returns

After the end of each tax year, you must submit an annual return, form P35, together with a form P14 for each employee. If you pay expenses to employees or provide any benefits in kind, you must complete form P11D or P9D by 6 July. You must also give employees their P60 and details of their taxable expenses and benefits.

Penalties are charged automatically if returns are late and there are additional penalties for incorrect returns and for failing to file online if required to do so. The main deadlines and late submission penalties are shown in the following table.

Form	Deadline	Initial penalty
End of year returns P14 and P35	19 May after end of tax year	£100 per month per 50 employees
Benefits in kind forms P9D and P11D	6 July after end of tax year	£300 per return plus up to £60 per day

Employers with more than 50 employees must file annual returns electronically. If you have up to 50 employees you will not have to file online until 2009/10 but HMRC pays cash incentives of £75 to £250 a year for filing earlier years online.