P35 late filing penalties

P35 late filing penalties

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I always understood that penalties would not be charged for the late filing of nil returns. Has this changed?
Incidentally, I have received penalty notices for two clients in the past few days, and both are for 2005!
many thanks.
Cathy Ratchford

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By andymeeson
31st May 2006 16:56

Fascinating philosophical question
The wording of TMA 1970 s.98A is:

"where the number of persons in respect of whom particulars should be included in the return is fifty or less, [the monthly penalty] is £100..."

So, for a nil return, it could be argued that:

(i) there are no relevant persons, and so there can be no number of persons, and so the penalty cannot bite;
or:
(ii) the number of persons is zero, which is a number less than 50, and so a £100 penalty is due.

I have no idea which is the case. Personally I incline towards (i), but I imagine HMRC might incline towards (ii).


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By AnonymousUser
31st May 2006 17:30

Nil?
My local office have told me penalties are cancelled where the liability is nil.

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