Employer end of year return (P35)

What benefit information goes on a P35?

Note

2018 is the final year for which a P35 is required.

From 1 January 2019, the P35 is abolished in line with PAYE Modernisation.

For your current requirements, please see Employer obligations from 1 January 2019.

Department of Employment Affairs and Social Protection (DEASP) payments (P35L)

Illness Benefit (IB)

Since 1 January 2018 employers no longer need to include IB payments as part of the employee's pay. 

Details of the IB claim are sent by the Department of Employment Affairs and Social Protection (DEASP) directly to Revenue. We will issue an amended tax credit certificate to the relevant employer.

There is also no need for the employer to include details of IB on Forms P45, P60 or P35L after 31 December 2017.

Maternity and paternity benefit

Both maternity benefits and paternity benefits payable from the DEASP should be excluded on an employee's P35L. DEASP recipients will have their annual tax credits and cut-off points reduced by the benefit amount. This means additional tax will be stopped from any employment or non-DEASP pension.

You will be advised of the adjusted tax credits and cut-off points on Tax Credit Certificates (P2Cs). These DEASP benefits are taxed by reducing employees' tax credits and cut-off points. You should exclude these figures on forms P35L, P45 or P60.

Employee benefit information

Employee benefit information is reported on the P35L (from 2017 onwards) and P35LF portion of the P35.

The following information should be recorded for each employee and returned on the P35L.

Company share-based remuneration

This involves payment through shares in the employer company or a company that controls the employer company. This information is included in 'Taxable pay (this employment)'.

Taxable benefits

These are non-cash benefits, for example private use of a company car, preferential loans or subsidised accommodation. This amount excludes company share-based remuneration but includes shares in other companies that are not a company that controls your company. This information is included in 'Taxable pay (this employment)'.

Total benefits for employees are recorded on the P35LF. These include:

  • the total benefits in kind (BIK) for all employees, such as medical insurance paid by you on behalf of your employees
  • the total number of employees contributing to pension products and the total amount contributed by these employees. Also, the total number of employees for whom you made a contribution and the total amount you contributed. This includes:
    • retirement benefit schemes
    • Personal Retirement Savings Accounts (PRSAs)
    • Retirement Annuity Contracts (RACs). 

Next: How do you make P35 payments and claim refunds?