IR35 payment deadline
The IR35 rules are intended to prevent the avoidance of tax and National Insurance Contributions through the use of personal service companies and partnerships. The IR35 shorthand reference to these rules dates back to when they were first introduced by the 35th IR press release of the Chancellor’s Budget in 2000. The rules are designed to prevent people who use intermediaries from being better off than they would have been if their end clients had employed them directly. The IR35 rules can apply in any business sector.
There is a tight deadline for the calculation of any deemed salary payment and paying HMRC. The key dates are:
- the deemed payment is treated as if an actual payment had been made by the company on 5 April;
- tax and NICs have to be paid to HMRC by 19 April;
- form P35 showing details of the deemed payment has to be submitted to HMRC by 19 May.
Special rules apply to employers that submitted a provisional P35. Provided a payment on account of the estimated tax and NICs for 2012-13 was made by 19 April 2013 supported by a P35 showing provisional figures, then intermediaries have until 31 January 2014 to submit amended returns showing the final figures and to pay any additional tax and NICs due. Interest on overdue tax is chargeable from 19 April if tax and NICs are underpaid on the basis of provisional figures but no penalties will be charged in certain circumstances.