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PAYE: 2006/07 Penalties for Outstanding PAYE Returns

Category Technical - TCN (archive)
AuthorTechnical Department
HMRC have issued an important message in respect of the 2006-07 Penalty notices for Outstanding PAYE Returns HM Revenue and Customs (HMRC) have asked us to notify members who are agents and employers that some of the recently issued 2006/07 PAYE penalty notices were issued in error, and that those affected should take no action until HMRC have investigated the issue and issued a further statement. Members will, however, need to be mindful of any deadlines for appeal.

The text of the HMRC statement, which has a link from the HMRC Stoppress section of their website at:, is as follows:

"PAYE: 2006-07 Penalties for Outstanding PAYE Returns

"We have identified that some electronically filed returns (P35 and P14s) have given rise to incorrect penalty notices which were dated 24 September 2007 being issued to employers.

"We are urgently investigating and will provide an update as soon as we can (by Tuesday 9 October at the latest).


"Please pass on this information to your clients or members if you believe they may be affected by this problem.

"Employers and Agents

"Although returns are due by 19 May, penalty notices have been issued only where these have not been recorded on our systems at 28 May. So, if you know that your returns were sent in by 28 May 2007 we suggest that you do not contact HMRC about any penalty notice you have received nor formally appeal against the notice until we have issued our next update.

"We are working to identify all affected cases – although initial findings are that significantly fewer than 8% of all penalties are affected - and to arrange for the penalties issued in those cases to be cancelled without the need for you to contact HMRC. We hope to advise you whether this is possible in our next update.

"We are very sorry for any inconvenience that this problem may have caused."

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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