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Post Info TOPIC: P35 CIS - Gross Payments Query
woody88


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P35 CIS - Gross Payments Query
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I need to complete a P35 for a client who has some sub-contractors who are deducted tax at either 20% or 30% and some that have gross payment status and do not get deducted any tax at all.

What I would like to know is do the ones that have not been taxed (Gross Payment Status) still go on the annual P35 Return?

Ben



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Robert Pearce


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No, there's nothing to report as (by definition) no deductions have been made from subcontractors who have gross payment status.  It's just the deductions made from the client's other subcontractors that would be shown in box 25 of the P35.



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woody88


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Thanks for the reply Robert,

I understand your answer - what confused me was that the payroll software that I use, had three option for Sub-Contractors 0%, 20% or 30%.

I figured that if the 0% option was there, then maybe I need to summarise all payments made to Gross Payments Sub-Contractors too.

But it would seem that i'm wrong, and i'm sure not for the last time

Ben



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Tom McClelland


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The three options are there because you need to do the monthly CIS300 report, and that DOES include the contractors paid gross.

On the P35 the entire year's subby deductions are shown as a single figure with no analysis.

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woody88


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Thanks Tom.

This now makes total sense, however, what should I do if when I submit the P35 that I find that the client has made errors in their monthly CIS returns? Should I send the correct Tax, that I think should have been paid on the P35 and then pay the difference via the online HMRC payment system. This doesn't seem right as the monthly returns would then be different.. arrghh

Ben



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