Penalties for employers who filed starter and leaver (P45 and P46) forms on paper in the period 6 October 2011 to 5 January 2012
After 26 January 2012 we will begin to issue penalties to employers who did not file their starter and leaver forms online in the period between 6 October 2011 and 5 January 2012.
The penalties will range from £100 to £3,000 depending on the number of forms that should have been filed online.
These penalties will be triggered where an employer has incorrectly filed more than two forms on paper during the quarter up to 5 January 2012.
Employers are told they can appeal within 30 days of the date of the penalty notice by writing to the address indicated in the notice stating why they think the penalty notice is wrong.
Penalties for outstanding 2010-11 PAYE Employer Annual Returns (P35 and P14s)
The 2010-11 Employer Annual Returns (P35 and P14s) were due by 19 May 2011. These returns are now over 8 months late and we have started to send penalty notices if our records indicate that we have not yet received the return.
The penalty will be £100 per 50 employees for each month the return is outstanding, from 20 September 2011 to 19 January 2012. So, an employer with 50 or less employees will receive a £400 penalty. This penalty is in addition to those penalties already issued in September 2011.
If an employer has a return to make and has not sent it yet, they should send it without delay.
Employers are told they can appeal within 30 days of the date of the penalty notice by writing to the address indicated in the notice stating why they think the penalty notice is wrong.
We are aware from previous reports from members that a number of incorrect penalty notices were issued in September and October for failing to file 2010/11 P35/P14s and P11D(b)s respectively. If Members receive penalty notices for either filing on paper or for 2010/11 P35/P14s, which they believe to be incorrect, please can they provide us (at atttechnical@tax.org.uk with appropriate details of the nature of the penalty and why it is incorrect. This will help us to get a more accurate picture of why incorrect notices can arise and enable us to engage with HMRC with the aim of improving accuracy in the future.
Technical Team
27 January 2012
