March 2008

Employer and Contractor Returns Interim Penalties

HMRC have announced that they have started sending penalty notices where their records show that they have not received 2006/07 forms P35 and P14 (the employer’s annual return and end of year summary). Similar penalties are also being issued where 2006/07 form CIS36 (the contractor’s annual return) is outstanding.

These returns were due by 19 May 2007 and it is likely that these penalties are a follow up to penalties issued in September last year. The penalty is likely to be £100 per 50 employees and/or subcontractors for each month the return is outstanding, running from September 2007 to January 2008 i.e. four months.

However, no penalties should be issued where an appeal has been received against the September penalty and the appeal is still outstanding.

It is not unusual for HMRC penalties to be issued in error. If this is the case or if there is a reasonable excuse for the delay in sending in the return, penalties can be reduced or even waived altogether.

If you receive a penalty notice that you believe is wrong, please get in touch with us as soon as possible so we can resolve the matter for you.

Internet Link:

HMRC annual returns note