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HMRC tackles problem of P35 late filing penalties

HMRC tackles problem of P35 late filing penalties

Contractor accountants may be interested to learn that HMRC has agreed to adopt a new approach towards the problem of multiple P35 penalties.

A lot of companies have complained about receiving hefty fines of £400+ totally out of the blue each September. This issue was identified as a priority that became even more acute when tribunals started to dismiss penalties and criticised HMRC’s approach as one centred around raising revenue rather than ensuring employers comply with the deadline.

The deadline for filing p35 returns is the 19th May and HMRC has now agreed to send notifications in the middle of March rather than mid-February. Reminders will be start to be sent out on the 28th of April this year if the Revenue believes P35s are outstanding.

At the end of May, the Revenue will introduce a new P35 Interim Penalty Letter that will inform employers that they have incurred a penalty and what action they should take to stop it increasing. This letter will be sent within one month of the filing deadline. HMRC also intends to improve its guidance for the online submission of P35s.

The online submission system has come in for a lot of criticism from employers who believed they had filed successfully only to discover they had actually filed in “test” mode rather than “live” mode.

A Revenue spokesperson said these new measures would help employers avoid unnecessary penalties and reduce the amount of instances where large penalties are charged.

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Image: Filed Away by mrmanc

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