Written by Paul Chappell
Published on January 13, 2010

From 6 April 2010 HM Revenue and Customs are increasing the penalties incurred for the late filing of the P35/P14 forms and the P11D/P11D(b) forms.

At present the current penalty that applies to the late submission is £100 per 50 employees. HMRC are often quite late in issuing these penalties and it can often be November before HMRC start to issue penalty notices by which time your business can often already have accrued £400 of penalty.

The new penalty regime will be as follows:-

  • An initial penalty of £100 on 20th May
  • £100 per month (or part thereof) for the next 2 months
  • Plus - a daily rate of £10 per day for returns that are more than 3 months late
  • Plus - a penalty of 5% of tax due for the return period if return over 6 months late
  • Higher penalties of 70% of the tax due if return over 12 months late
  • A penalty of 100% for the deliberate withholding of information necessary for HM Revenue and Customs to assess the tax due