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p35
19 May Approaches
Don’t forget – non-RTI Pilot employers have to submit their 2012/13 annual returns (P35 and P14s) by 19 May 2013 to avoid late filing penalties being imposed. There is also an obligation for employers with an open PAYE scheme to tell HMRC if there is no return due. Further Information HMRC – Your 2012/13 Employer [...]
Year-End – RTI Pilot Employers
In the instance that an employer has entered the RTI pilot, HMRC have issued guidance for ending the tax year 2012/13. Simply, HMRC have to be notified that the employer has finished tax year processing for the PAYE scheme on the PAYE scheme’s final submission of the tax year. At this time, the employer will [...]
The Employer Payment Summary and ‘Split’ Payrolls
An emerging picture could be a concern to employers who have a single PAYE scheme Reference payroll that is split between two, or more, locations. For example: The main payroll is processed in-house, however, the expatriate employees on the payroll are processed externally by accountants For confidentiality reasons, the employees’ payroll is processed [...]
HMRC v HOK Limited
It has been an unfortunate time for HMRC in the First Tier Tax Tribunal, with a number of judges overturning Penalty Notices served for the late filing of the P35. Judgements referred to HMRC acting in a ‘high handed’ and ‘disreputable’ manner by sending out Penalty Notices in September for the late filing of the P35 in [...]
CARE Qualifying Schemes, SSP Linking letters, Company Vans, UK and Liberia Tax Agreement, Case Law Corner on Retirement Age, Sickness and Annual Leave and Company Vans
The 19th of May has passed and P14s and P35s should, hopefully, have been submitted. I notice that HMRC got itself into hot water last week by issuing P35 reminder letters to employers who had already submitted their P35s. Due to postage issues and crossovers, I suppose it was inevitable that this would happen and [...]
P35 Reminder (3)
We have recently produced articles regarding the looming P35 deadline, which is 19 May 2012 for tax year 2011/12. This can be summarised: P 35 Reminder This was the first communication reminding employers of their year-end filing obligations, outlining the late filing penalties. P35 Reminder (2) This was the second communication, advising the same information. [...]
P35 Question Number 2
This is particularly relevant as we are in the final week of P35 processing: What is a “free of tax” payment in the context of P35 reporting, and does it involve PSAs? Question 2 in the Part 3 Checklist of the P35 Employer Annual Return asks: “Did you make any ‘free of tax’ payments to [...]
P35 Reminder (2)
HMRC has issued another reminder to employers that the P35 and P14 deadline is 19 May 2012 for the tax year that finished 05 April 2012. They are writing to all employers who have not, yet, sent in their return advising of the penalty charges that will apply for late returns. See our table below: [...]
P35 Reminder, RTI Goes Live, Bringing Forward the Staging Date, HMRC Objectives 2012/13 and Budget 2012 – Pensions
2012 is the Chinese year of the Dragon. According to the Website I visited, some of the Dragon’s traits are that they are driven, unafraid of challenges and willing to take risks. They are passionate in all that they do and do things in a grand fashion. This seems perfectly fitting for this new payroll [...]
P35 Reminder
Quick as a flash following the end of the tax year, HMRC issued a Return reminder to employers on 19 April 2012. This reminded employers that their annual returns should be sent on time or a penalty will be issued. Just our own reminder of the late filing penalties: Return Deadline Late Filing Penalty P35 [...]
HMRC Announcement
2011 saw an unfortunate year for HMRC in the First Tier Tax Tribunal, with a number of judges overturning Penalty Notices that had been served for the late filing of the P35. Judgments referred to HMRC acting in a ‘high handed’ and ‘disreputable’ manner by sending out Penalty Notices in September for the late filing of [...]
BASIC PAYE Tools 2012/13
Last week we mentioned that HMRC had updated their PAYE Basic Tools package for the above tax year. A reader made the very valid point that, whilst any employer can use these tools, they are most useful for employers with up to and including 9 employees as at 05 April, including leavers. If the employer [...]
HMRC Basic Tools (2012/13)
HMRC have updated their version of the PAYE Basic Tools package which allows employers to run their payrolls and contains the following main features: An employer database on which employers can process their payroll. The latest version allows employers to complete processing for 2011/12 and start 2012/13 when it arrives P11 Calculator Online filing tool [...]
P35 Filing Penalties
We have not been shy of highlighting the spate of cases where HMRC have been criticised for charging penalties. There are two more cases to report this week from the First Tier Tribunal (Tax), together with a statement from HMRC. Bridge Utilities Ltd v HMRC Bridge Utilities were fined £800.00 by HMRC in respect of [...]
HMRC explains the 4-month delay in issuing P35 penalty notices
HMRC responds to severe criticism by First-tier Tax Tribunals over the policy of waiting until September to penalise employers who did not file their P35s by the May deadline. The following is an extract from the latest weekly informal update (dated 23 September) from HMRC to employer representatives. The 2010-11 Employer Annual Returns (P35 and P14s) were [...]
Tax tribunal clarifies status of P35 confirmation email
Believing an email from HMRC that says the same thing whether an employer makes a test submission or a live submission is not a “reasonable excuse”. In a decision given on 28 April in the case Law Costing Ltd v Revenue & Customs, the First-tier Tax Tribunal ruled that the confirmation email, which is sent [...]
HMRC’s interpretation of “reasonable excuse” questioned in more cases
Penalties overturned where taxpayer has a “reasonable excuse” and HMRC cannot disprove that the excuse is factual. Two weeks ago we reported two First-tier Tax Tribunal decisions that overturned HMRC’s interpretation of what constitutes a “reasonable excuse”. The “excuses” in those cases involved (1) a taxpayer’s belief that his employer had paid the correct amount [...]
HMRC takes hard line with employers without computers
No online filing exceptions for employers who do not use computers or who cannot afford to buy one or use a service provider. Almost all employers are required by law to file year-end P14 and P35 Returns and in-year P45 and P46-series forms online. Exceptions are limited to employers operating the simplified deductions scheme for [...]
Notifying HMRC when No P35 is due
Employers and agents can inform HMRC online if no Annual Return is due. If an employer fails to make a payment to HMRC Accounts Office, HMRC will eventually send a threatening “payment overdue” letter, warning of impending legal proceedings. If the reason for not making a payment is that no monies were due, an employer [...]
