Enter Your E-mail

HMRC have started to issue interim penalty notices for outstanding 2006-07 employer year-end returns.

HMRC have started to issue this year's round of penalty notices where their records show that an employer has not yet submitted 2006-07 PAYE annual returns (forms P14s and P35) and, where due, a 2006-07 contractor’s annual return (form CIS36).

These returns should have been submitted by 19 May 2007 and are now well overdue. The penalty for failure to submit such returns on time is currently £100 per 50 employees and/or subcontractors for each month the return is outstanding, as at 19 September 2007.

Those who have not yet submitted their returns need to do so as soon as possible to avoid further penalty charges being incurred. HMRC should also be notified straight away if a return is not due so that they can update their records accordingly (for example, employers who did not have any employees during 2006-07). HMRC will also cancel any penalty already issued and notify the employer that this action has been taken.

Employers who had less than 50 employees, who are obliged to submit a return (because they have tax, NICs or student loan information to declare) should submit the return online as they are still entitled to claim the £150 online filing incentive payment, even though the return is late.

Employers who believe a penalty notice is incorrect should appeal to HMRC in writing within 30 days of receipt.