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Late penalty for late P11D filing

A client has received in January 2012 a £400 penalty for late submission of the P11D for the year ended 5 April 2007.  He is rather upset about this!

The P11D's were done by his previous adviser.  I am trying to establish exactly what has happened but as it was some time ago I think it will be difficult to prove now that they were filed on time (if indeed they were).  I certainly wouldn't expect there still to be proof of postage.

So, can HMRC wait so long before issuing a penalty?  And is it reasonable to appeal of the basis that because they have waited so long to issue the penalty our client cannot provide the usual evidence to show it was submitted on time?


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10th Feb 2012 16:57

Reasonable excuse

APPEAL.....HMRC are losing lots of these cases at tribunal for many reasons see TC1358 Ponteberem RFC where he simply forgot to press the submit button. Also HMRC have been slated for "using the penalty system as a cash generating scheme" for waiting four months before issuing the first penalty the tribunal found that " HMRC had neither acted fairly or in good conscience" by not issuing a penalty after one month

If your client has reasonably assumed that his advisor has submitted the returns and he has paid him for the service he has a reasonable excuse

Also check out TC1631 Same old scenario HMRC claim P35 received late and issue a fine. The tribunal judge concluded that the HMRC recording system was unreliable  so they could not prove it was late  s      

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By jford
14th Feb 2012 15:06

Thanks for your help.

I've now discovered the previous accountant did file the P11D late in January 2008 - 7 months late.  It was the accountants fault and they offered to pay the fine.  A fine was duly raised but for £300 which the accountant paid.  What appears to be happening now is that HMRC have realised some 4 years later that the fine ought to have been £700 and so they want the other £400 now!  I have appealed but what spectatular cheek from HMRC!

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