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Employers are required to submit their T35 “Remittance Card for Deductions of Income Tax Instalment Payments and National Insurance Contributions” together with any payment of ITIP and National Insurance deducted from employees to the Income Tax Division on a monthly basis. The submission of the remittance card and payment is due on or before the 19th of the month within which the payment period ends.
The term ”payment period” for the purposes of this guide refers to an income tax month, being the period from the 6th day of any calendar month and ending on the 5th day of the following calendar month. For example, a period commencing on 6 April will end on 5 May, with the payment of any ITIP and National Insurance deducted during that payment period being due on or before 19 May.
Before submitting the remittance card, the employer should add up all the ITIP and National Insurance deducted (both employee’s and employer’s) for all their employees from payments made between the 6th day of the previous month and the 5th day of the current month. The ITIP and National Insurance totals should be entered on the remittance card which should then be sent together with any payment to the Division.
The remittance card should still be submitted if no tax has been deducted during the payment period. In this case, the remittance card should be completed showing “0.00” for the relevant payment period.
Employers should note that by enrolling for Online Tax Services for Employers their monthly remittance can be made online, (including a nil remittance), therefore removing the need for the remittance card to be sent to the Division each month. Payments can be made by BACS credit transfer, credit card or debit card. For more information, please see "Online Tax Services for Employers".
It is important to understand that the employer is deducting ITIP and National Insurance from the payments made to employees on behalf of the Division. The deductions do not belong to the employer and must not be used to assist with cash flow within their business. The ITIP and National Insurance deducted belong to the employee and will be used to offset any future income tax liability belonging to that employee as well as being taken into account for National Insurance purposes if appropriate.
Late payment of the monthly ITIP remittance will be subject to a penalty of 5% of the amount due. An additional penalty will be due if all or part of the ITIP outstanding remains unpaid six months after the due date. The additional penalty will be 5% of the amount unpaid.
Penalties for late payment of the monthly remittance will also be due:
In addition, a Notice of Determination, estimating the amount of ITIP that should have been paid, will be issued in cases where payment is not made by the due date. The penalty will equal 5% of the amount of the Notice of Determination.
It is therefore important that all payments are made on time.
Where payment is made late, any subsequent payments will, unless otherwise specified by the employer, be offset against the earliest outstanding amount first.