The Chartered Institute of Payroll Professionals

27 January 2012

HMRC have issued the latest update in their informal newsletter to stakeholders. Please do remember this is an informal update shared with representatives for the benefit of members.

 

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.

David

 

David Ellis

Business Customer and Strategy – Employer and Agent Strategy Team

HM Revenue & Customs