Help Paye Not Filed Properly

jolo_2

Yesterday i got a letter from the IR to say that the PAYE return I submitted last may was only a testfile and as far as they are concerned no return was filed.They have charged £100 per month since May in penalties but this is the first contact about it, and the first time we'd tried to file online, and also the first time I'd ever done it (I thought I'd done all that was required but i realise ignorance is no excuse). I phoned the government gateway and they have a record of my test file, so they know I tried to do it. I did the proper return yesterday but now we have to pay the £900 or appeal against it. Surely it's unfair not to tell us until 9 months have passed? Has anyone any tips and/or advice re the appeal, and do you think we have any chance of not paying this penalty as it was a very genuine mistake on my part.:eek: Thanks.

Dunc6

You will need to file the P35 and lodge an appeal. I believe there is a clause where they can only charge the maximum of £100 or the PAYE outstanding. Cant find the information at the moment I will have a look tomorrow.

hopon

Submit it online now and then send in an appeal, this has been happening a LOT - agents have been receiving loads of them even when they have received the email confirmations (Although I haven't had any )

It stinks that the IR send out SA penalties within a couple of weeks of the due date but these payroll ones haven't been issue until you are 9 months late.

Bram

Dunc 6....did you find any further information regarding the maximum penalty? I have just discovered that I didn't receive a P35 for year 2005/2006 (my 1st year trading and didn't know)when I received this years one (minus the P14 and P60). I also got a phone call from the tax office on Tuesday to tell me they hadn't received LAST YEARS P35 and I might have to pay a £900 penalty.

Thanks.

hopon

According to accountingweb there has been around 154000 of these fines sent out. Nice little earner for the treasury.......... It's amazing how penalties for late submission of SA returns get sent out in a matter of weeks yet paye & CIS returns have taken 9 months!!

Send an appeal letter in, the following are suggested as potentially valid grounds for appeal:

”Not aware of any problem until now and would have dealt with this earlier if it had been known.”

”Penalty is excessive in relation to “crime”. This presumes that the PAYE tax/NIC was paid as appropriate and, therefore, there is not loss to the Exchequer.”

If there was no tax due on the return the penalty should be reduced anyway upon submission.