P35 penalties, paper P11Ds, updated CWG2, student loan deduction thresholdThursday, May 26th, 2011
The First-tier Tax Tribunal is giving out very strange messages – one month declaring that HMRC is too strict in interpreting the term “reasonable excuse”, and the next month applying the term more rigidly than ever. Have a look at some of the cases and see what you make of them. What is clear is that, despite being aware four years ago that the confirmation email sent after P35s are filed online was very confusing, HMRC has failed to improve the wording. To the Tribunal’s credit, it also criticised HMRC for waiting four months after a failure to file a P35 before issuing a penalty notice, by which time the penalty has increased (for smaller employers) from £100 to £400!
There will be a week’s gap in the news now while the author is on holiday, thinking of things other than P35s!