P11D Penalty Notices

• Recommend on Facebook
• 
• Share on Linkedin
• share via Reddit
• Tweet about it
• Subscribe to the comments on this post
• Print for later
• Tell a friend

In their latest update, HMRC have advised that, from last week, P11D(b) Penalty Notices have started to be issued – this is the form on which an employer makes their annual Class 1A Return.  The penalty is for tax year 2010/11, where P11D(b) Returns were due by 06 July 2011.

The penalty is £100.00 per 50 employees for each month that the Return is outstanding.  Therefore, if the P11D(b) is not received at HMRC by 06 November 2011, for example, a company with 50 employees will receive a penalty in the sum of £400.00.

The question remains as to why HMRC cannot issue the Penalty Notice earlier in the non-compliance process rather than waiting over four months, by which time the penalty has escalated.  Case Law Corner last week looked at a case regarding late P35 Penalty Notices, heard by the First Tier Tribunal (Tax).  These Notices were similarly issued after four months and, in his ruling, the judge ruled that HMRC were guilty of ‘conspicuous unfairness’ by failing to alert the employer earlier.

Further Information

• Payroll Help 09 November 2011 Foresight Financial Services Ltd v HMRC

Tags: Case Law Corner, Class 1A Return, Foresight Financial Services Ltd v HMRC, non-complience, p11d, P11D(b), penalties, Penalty Notice

This entry was posted on Saturday, November 19th, 2011 at 09:00 and is filed under P11D. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.