ITIP Year-End Return (P35 Equivalent)
Annual reconciliation of Isle of Man Income Tax Instalment Payments (ITIP) and National Insurance contributions deducted by employers throughout the tax year. Filed with the Assessor of Income Tax within 3 months of the tax year-end (5 April), giving a deadline of 5 July.
Who this applies to
- All Isle of Man employers who operated ITIP during the tax year
- Directors who paid themselves via ITIP
- Businesses with employees who left during the year (final P45 equivalents must also be filed)
What to file
Annual employer reconciliation summarising total wages paid, total ITIP income tax deducted, and total National Insurance contributions (employee and employer) for all employees during the tax year. Accompanied by individual employee summaries (P60 equivalents) provided to employees and filed with the Assessor.
How to file
Via the Isle of Man Assessor's employer online services portal or via approved payroll software. P60 equivalents must be provided to employees by 5 June (one month before the employer's 5 July deadline).
Payment due
All ITIP and NIC payments should already have been made monthly throughout the year. The year-end return is a reconciliation — any shortfall identified on reconciliation is payable on filing.
Penalties for missing this deadline
Fixed penalties for late filing. Interest accrues on any underpaid ITIP or NIC identified at reconciliation. Employers are personally liable for correctly deducted ITIP — if the Assessor later finds an employee was under-taxed due to employer error, the employer may be assessed.
Filing checklist
- Reconcile all monthly ITIP and NIC payments made to the Treasury against payroll records
- Prepare individual employee summaries for all employees who worked during the year
- Issue P60 equivalents to all employees by 5 June
- Identify any employees who left during the year and ensure P45 equivalents were filed at departure
- Complete and submit the employer annual return by 5 July
- Pay any reconciling amount identified
Common mistakes to avoid
- Issuing P60 equivalents to employees after the 5 June deadline — employees need these for their own income tax returns
- Failing to reconcile employee-level deductions against the aggregate monthly payments, leaving discrepancies undetected
- Not filing the annual return for a dormant company that still technically employed a director during the year
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