We would suggest that you routinely create a new employee account whenever you take on staff.

The advantages are that:

• you will then be in a position to record hours worked, particularly important where for example you normally record hours worked on projects
• record payments made to that individual, and
• process any expense claims made by that individual

If you do create a new Employee account whenever you take on staff there will be no need to also complete a P38A Employer Supplementary Return when filing your P35 Employer Annual Return.

Note that the P35 can be filed electronically with HM Revenue and Customs direct from this application on completion of the Employee Payroll Year End procedure.