HMRC Vermin

Is this a record? Client receives a penalty notice dated September 2010 in the sum of £1,200 for alleged non-submission of 2005/2006 year end PAYE returns. No relevant assessment or correspondence was received between 19 May 2006 and September 2010. Seems a good way to make an 1,100% profit on your investment in 4 1/2 years. If anybody dealt with Southampton office in that era, be warned that my clients had a telephone admission that certain documents were mislaid at that time.