HMRC Penalty Notices
H.M. Revenue & Customs say that they are issuing interim penalties for outstanding 2006-07 Employer Annual Returns from 24th September 2007. Penalty notices will be sent out where records show that 2006-07 Employer's Annual Returns (P14s and P35s) and 2006-07 Contractor's Annual Returns (CIS36) which are due have not yet been received.
These returns were due by 19th May 2007. The penalty is levied at £100 per 50 employees and/or subcontractors for each month a return is outstanding, as at 19th September 2007. If the return has not yet been filed that already amounts to £400.
HMRC's advice is to send in outstanding returns immediately. If no return was due and a penalty is issued, employers have 30 days to appeal.
Late returns will still attract an online filing incentive of £150 tax-free if an employer has fewer than 50 employees, and submits the return online.
HMRC will be sending out further interim penalties later in the year where any return remains outstanding, and final penalties will be issued on receipt of the late return.
For the 2005-06 tax year, many penalty notices were sent out in error and evidence would suggest that the same thing is happening 2006-07. There have been a number of instances where penalty notices have been wrongly issued to clients. The various Annual Returns were filed online long before the due date and confirmation/receipt of filing received from HMRC!
A particular 'problem' date for HMRC appears to be the 17th May 2007, with many Annual Returns filed online on this particular day. It would appear that the vast majority of these Annual Returns are still in the queuing system at offices to which they relate, with penalty notices automatically being generated due to non-processing of Returns. Although the Revenue has vastly improved its online filing capabilities, a number of problems still exist.
If you have received a penalty notice and you feel it should not apply feel free to contact our Payroll Manager, Sam Hillier, and we can attempt to resolve the situation on your behalf.
These returns were due by 19th May 2007. The penalty is levied at £100 per 50 employees and/or subcontractors for each month a return is outstanding, as at 19th September 2007. If the return has not yet been filed that already amounts to £400.
HMRC's advice is to send in outstanding returns immediately. If no return was due and a penalty is issued, employers have 30 days to appeal.
Late returns will still attract an online filing incentive of £150 tax-free if an employer has fewer than 50 employees, and submits the return online.
HMRC will be sending out further interim penalties later in the year where any return remains outstanding, and final penalties will be issued on receipt of the late return.
For the 2005-06 tax year, many penalty notices were sent out in error and evidence would suggest that the same thing is happening 2006-07. There have been a number of instances where penalty notices have been wrongly issued to clients. The various Annual Returns were filed online long before the due date and confirmation/receipt of filing received from HMRC!
A particular 'problem' date for HMRC appears to be the 17th May 2007, with many Annual Returns filed online on this particular day. It would appear that the vast majority of these Annual Returns are still in the queuing system at offices to which they relate, with penalty notices automatically being generated due to non-processing of Returns. Although the Revenue has vastly improved its online filing capabilities, a number of problems still exist.
If you have received a penalty notice and you feel it should not apply feel free to contact our Payroll Manager, Sam Hillier, and we can attempt to resolve the situation on your behalf.
Labels: Written by Colin Willett
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