Late P35 Fine Appeal

Late P35 Fine Appeal

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Client has received £400 fine for late submission of P35 (received October '10). Client had thought they had submitted P35 via their own software in early June therefore accept £100 fine should apply, but were not aware that P35 not received between June & October therefore not aware additional fines were accruing.

Is there any point in appealing this fine (and, if so, on what grounds)? PAYE owed at year end was approx £2K (now paid in full).

Originally tried to appeal on grounds fine was "disproportionately large" as client not aware P35 late for period from June to October (no correspondence received from HMRC in this period) but recently rejected. Any point in continuing with appeal?

Replies (5)

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By petersaxton
04th Jan 2011 07:38

Was it submitted?

Did the client submit the P35?

HMRC are cavalier in issuing these penalties.

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By yorky1000
04th Jan 2011 14:51

HMRC don't see it as a problem

I have raised this at working together meetings & HMRC simply don't get the point. There is no way of receiving a £100 penalty unless you actually file the P35 a month late. There is no contact between HMRC & the taxpayer until £400 is reached - if you think you have sent it, you don't learn the error of your ways until £400 is reached. Then of course because the penalty letter takes 20 days to be delivered and the time taken to investigate it another £100 is added.

It is appalling that you can incur £400 in penalties without knowing about it.

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By petergrove
04th Jan 2011 20:15

Was it submitted?

Hi Peter, sorry for the delay replying. No, they "thought" they had but HMRC had no record of this. When client contacted me I submitted on their behalf but, due to the time the penalty notice was sent, £500 fine had already been incurred.

This seems pretty harsh for a minor oversight. Has anyone been able to successfully reduce this with similar circumstances?

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By rockallj
04th Jan 2011 21:09

Argue it

Make your point again. If there was no resulting late payment of tax, state that the penalty is disproportionate and argue your case. State that the time delay in notifying is unfair and unequitable, etc. etc and dont let them fob you off. They will almost certainly back down.

I've done the above and it's worked every time.

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By microhands
14th Dec 2011 10:28

HM R & C wont give an acknowledgement

My company has been fined £400 + £200 for failing to submit the company P35 by the deadline date. This was due to an elementary error on my part in not using the submit button. I have proof (screen grabs of the web site) the submission was filled-in 2 days before the deadline.

There are only 2 employees in the company. The company does not owe any PAY or NI.

HM R & C are stating they do not require to give the company notice an appeal has been submitted. They are not oblidged to give a date for the appeal to be considered.

The £200 was incurred on the same date as the P35 was submitted after help from the Web Team at HM R & C.

It appears to me HM R & C have an outstanding arrogance which tells me they will decide when I get to know if the appeal will be considered. The company size is irrelevant to them.

Microhands was one of the first companies to sign up for on-line submissions and got a £500 reward for doing so.

The irony is the company never took up the £500 as it didn't know how to put it through the books!

This sort of affair makes me want to chuck it, de-register, go sole trader and get rid of the paperwork and yearly anguish of submission to company house et al.

 

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