Employers are being advised that, as from 26 January, HM Revenue and Customs is sending out penalty notices to those firms that have yet to file their 2007/08 employer's annual return. The returns should have been submitted by 19 May 2008.
Late returns will attract a penalty of £100 per 50 employees for each month the return is outstanding as from 20 September 2008 to 19 January 2009. This penalty, HMRC said, is on top of those issued for the four months between 20 May and 19 September. However, HMRC confirmed that it will not send a penalty in those cases where an appeal has been received against the first interim penalty (covering the previous four months) and is still outstanding.
Employers have been told that those firms with fewer than 50 employees, but that need to file a return, can still do so online and will still receive the £75 tax-free incentive even though the return is late. Any firm that does not need to make a return for 2007/08 should contact their HMRC office so that their records can be updated. No further penalties will be sent out and any penalties already issued can be canceled