P35 Deadline 23rd February 2015
By Noelle O’Connor, O’Donovan Lavin
If you’re an Employer, February 14th isn’t all about flowers and chocolates. It’s an important day for Employers because it’s the last day before the deadline (15th February) for the submission and payment of the 2014 P35 Returns to the Revenue Commissioners.
For employers who pay and file the P35 using Revenue Online Service (ROS), this deadline is extended to 23rd February 2015.
The annual P35 return should contain the following details:
- Names and PPS numbers of all employees, including directors paid by the business during the year. This applies even if an employee left during the year.
- The amount of all salaries including benefit-in-kind paid to employees during the year
- The income tax, PRSI (employer and employee) USC and LPT paid thereon.
- The amount of medical insurance premiums paid by the employer on behalf of the employees.
It is essential that the correct PPS Number is quoted for each employee on the return. Failure to do so could cause difficulty for your employees in obtaining social welfare benefits and pension. If the PPS number is not known, the details for the employee including full name, private address and date of birth must be entered on the P35 L/T.
Once you have prepared your P35, you can give each employee who was in employment with you on the 31st December 2014, his/her 2014 Form P60. The Form P60 can be used by employees to reclaim income tax on tax-deductible expenditure such as medical expenses, tuition fees etc.
Interest on P35 when liability paid by Direct Debit:
- Where the P35 liability is paid by direct debit during the year and the direct debits paid do not represent 90% of the final P35 liability, then the Revenue Commissioners may impose interest on late payment of tax.
- Therefore it is important to ensure that the direct payments made during the year are sufficient to cover at least 90% of the final year end liability.
As an employer, it is important that you file your annual P35 on time. Failure to submit your P35 on time may result in a penalty of €1,000 for each month or part of the month in which the P35 remains outstanding (subject to a maximum penalty of €4,000). Additionally, you are always putting yourself at risk of a revenue audit if you do not file on time and may even face criminal proceedings for the non-submission of a P35 return.
Contact us today if you require further information.