HMRC PAYE update 116

HMRC have provided a further informal update on PAYE related matters for sharing. The update covers outstanding 2011-2 and 2010-1 Employer Annual Returns.


Outstanding 2011-12 Employer Annual Returns (P35/P14s)

New actions have been introduced for 2011-12 Employer Annual Returns (P35/P14s) to encourage compliance with the filing deadlines and improve customer understanding about the filing and penalty process.

At the beginning of June employers who did not submit their Employer Annual Return by the deadline, or failed to tell us that they had No Return To Make, are being sent a letter telling them that they may already have incurred a penalty for the first month and need to submit by 19 June in order to avoid a further penalty.

Penalties accrue for each month (or part month) that a return remains outstanding after the filing date but they are only notified to the employer three times per year in September, January and May.

Information on our website under 'What happens when you file online' has been expanded to support employers through the online filing process. It explains the authentication and validation stages when a return is submitted, shows the difference between the responses from a Test In Live and a live submission and says how to check if a submission has been successful.

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 12 months late and HMRC has started to send penalty notices if our records indicate that we have not yet received your return.

The penalty will be £100 per 50 employees for each month your return is outstanding, from 20 January 2012 to 19 May 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 and January 2012.

If you have a return to make and have not sent it yet, please send it without delay.
If you wish to appeal against the penalty notice, you must write to the office shown on the notice within 30 days stating why you think the penalty notice is wrong.

Read more about late filing penalties.

Technical Team

Posted in: News