PAYE Penalties

PAYE Penalties

18 April 2012

Where employers do not file their annual P35 return by 19 May, they incur penalties of £100 per 50 (or fewer) employees for every month (or part month) that their return is late.

To prevent a recurrence of confusion in this area, as in previous years, HMRC has issued a statement on 19 March 2012.  To help employers comply with their obligations, HMRC will:

  • Change the date when they issue the 'Notification to complete form P35 Employer Annual Return 2011-12' from mid-February to mid-March 2012, so that employers will receive it much nearer to the end of the tax year
  • From 28 April 2012, where HMRC believes a 2011-12 P35 remains outstanding, they will issue an 'Employer Annual Return Reminder'
  • From 31 May 2012, HMRC will introduce a 'P35 Interim Penalty Letter' which will be issued over a five day period, so that it reaches employers within a month of the filing deadline.  The letter will state that the employer has incurred a late return penalty and explain what to do to avoid it increasing.  HMRC has worked together with the professional bodies on the content of this letter and it has been tested on employers and payroll agents to make it clear and employer-focussed

Should you have any further questions on this matter or any other PAYE-related matter, you should contact Aine at our Lurgan office

Additionally, we have an excellent PAYE resource on our website which you can access any time.  Click here to take a look at our PAYE Factsheets.

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