HMRC PAYE update (Employer annual returns, late payment penalties, filing starter/leaver information and ADR trial)
HMRC have provided a further informal update on PAYE related matters for sharing. The update covers Employer Annual Returns, 2010/11 Late Payment Penalties, filing PAYE starter and leaver information and an ADR trial for small and medium enterprise customers
No Employer Annual Return (P35 and P14s) to make for 2011-12
Employers who did not have to complete a P11 deductions working sheet, or equivalent record, during the 2011-12 tax year do not need to file an Employer Annual Return. But they should tell us if they have no return to make so that we can update our records to prevent us issuing any unnecessary reminders and penalty notices.
Using these forms is quicker, cheaper and easier than writing or calling. We will confirm by email that we have received your notification and email you once we have noted our records.
Last year we could not process a significant number of forms because we could not link the reference number on the form with the correct employer record. So please double check that the reference number you enter on the form is correct. If you are not sure what your employer reference number is you can find it on the front of your yellow payment booklet (P30BC) or on the electronic PAYE reminders we send you each year.
You must only use the form to tell us you had no return to make for 2011-12.
If you want to tell us about an earlier year you can write to us or telephone the Employer Helpline on 0845 7 143 143.
Find out more at: No Employer Annual Return to make 2011-12
Update on 2010/11 Late Payment Penalties
New late payment penalties for PAYE started on 6 April 2010. A number of penalties have been challenged by employers at the First Tier Tribunal. In one case the judge decided that the penalty calculation for the year should not include a penalty for late payment of the liability for the tax period 6 March 2011 to 5 April 2011 because this Month 12 payment is due by 22 April in the following tax year. The judge’s view was that the law only permits a penalty to be charged for sums that are due during the relevant tax year. HMRC has accepted this decision and has begun work to recalculate the penalties already charged for 2010/11 to remove any penalties for late Month 12 payments.
Employers themselves need to take no action: HMRC is now writing to every affected employer with details of their revised penalty calculation. Most employers will receive a refund of any sum overpaid within 3 weeks of the notification. In a small number of cases the sum will be reallocated, and this will be explained as necessary. HMRC anticipates this exercise will be concluded by the end of May.
Filing PAYE starter and leaver information
Almost all employers must now file PAYE starter and leaver information online. Employers must no longer send paper forms P45 or P46 to HM Revenue and Customs when an employee starts with or leaves their business. From 26 April we began to send penalties to employers with fewer than 50 employees who fail to file their starter and leaver information online.
Alternative Dispute Resolution trial for Small and Medium Enterprise customers
HMRC is running an Alternative Dispute Resolution (ADR) trial, which provides Small and Medium Enterprise (SME) customers with an alternative way of resolving tax disputes in compliance checks.
27 April 2012