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PAYE: 2006/07 Penalties for Outstanding PAYE Returns - Update

Category Technical - TCN (archive)
AuthorLisa Herd
Further to our alert of 5 October, HMRC have now issued an important update in respect of the 2006-07 Penalty notices for Outstanding PAYE Returns. Our alert of 5 October is available at:

HM Revenue and Customs (HMRC) have asked us to notify members, who are agents and employers, of an update to their notice in respect of erroneous 2006/07 PAYE penalty notices issued recently. They have confirmed that they are cancelling the incorrect penalty notices and are writing to affected employers to apologise. They also advise that affected employers need not take any action. Members should, however, remain mindful of any deadlines for appeal.

The text of the HMRC statement, which has a link from the HMRC Stop Press section of their website (go to: is as follows:

"PAYE: 2006-07 Penalties for Outstanding PAYE Returns

We explained on 4 October that we had incorrectly sent a number of penalty notices to employers despite receiving their 2006-07 Employer Annual Return.

We have now identified the particular employers who were sent a penalty notice by mistake. The error is confined to online returns and mostly affects those sent to HMRC on 17 May.

We have arranged for these penalties to be cancelled centrally and are writing to each employer affected to confirm this and to apologise. We appreciate that current postal difficulties may mean receipt of these letters may be delayed.

Affected employers will know from their online receipt if their return was made by 28 May. If it was there is no need to take any action by way of an appeal or otherwise.

We would like to apologise again for any inconvenience or embarrassment caused to employers, their agents or payroll bureaux as a result of our mistake."

Any members who encounter any problems in this area are invited to send any comments to Matthew Brown, Technical officer, at with ‘PAYE penalties - FAO Matthew Brown’ in the subject line.

Technical Department
020 7235 9381


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