A warning to all employers: HMRC fines incompetence

Pennywise

Just a general warning really, that HMRC are sending out penalty notices for allegedly not submitting end of year P35s and P11ds for employers who completed the HMRC online form to tell them that none were due!

This is because HMRC havn't updated their records. Apparently, all employer records need to be manually updated - the HMRC systems don't talk to eachother, and presumably, they've put just one bloke on the job with a huge pile of "nil" returns to process.

We've only just got the P35 penalties zeroised, and now HMRC are sending out penalties for the P11ds - they've STILL not updated their records from the "nil" returns due forms completed/submitted several months ago.

It's easy for a small business to just assume that they've done something wrong, forget they'd made this declaration, or not kept a confirmation of making it, and just pay up for an easy life and to stop the appalling threatening letters sent out by HMRC.

Don't pay up - write and tell them that you'd submitted a "nil" return via their website - they know they've got a major problem and backlog and will cancel the penalty. Although, as usual with HMRC, don't expect an apology for your distress and wasted time - after all, as we all know, they're always right!!!!!