PAYE

Penalties for outstanding 2007/08 P11D(b) returns

Last week, HMRC announced that it had begun to send out penalty notices where its records indicated that 2007/08 form P11D(b) Class 1A National Insurance contributions Annual Returns had not been received.

These returns were due by 6 July 2008. The penalty is £100 per 50 employees for each month the return is outstanding, from 7 July 2008 to 6 November 2008, i.e. four months.

We have heard reports that in some cases HMRC is chasing clients where the Forms P11D(b) have already been submitted online and receipted electronically, and in one case the failure to submit Form P11D(b) (which had already been submitted online and receipted) was quoted as a reason for withdrawing gross payment status from a CIS sub-contractor.

HMRC has said that if you receive a penalty notice that you think is incorrect you should contact the Employer Helpline whose telephone number is on the notice. In the meantime, we would also be interested to hear of cases where this has appeared to have happened. Please email anita.monteith@icaew.com.

18 November 2008