Are P11D penalties always due?

Are P11D penalties always due?

Didn't find your answer?

1) How willing are HMRC to reduce (automatic) penalty of £400 for late P11D?

2) Is it worth arguing with HMRC?

Replies (6)

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Euan's picture
By Euan MacLennan
19th Oct 2015 12:39

Would you care to expand?

Your brief description of your question has evidently been truncated:

"Company forgot to submit P11D (2014/15) for director's car (first year) but has entered car ben"

If you include the full description in the body of your question, it would give us the context - where has the car benefit been entered?

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By JSJ54
19th Oct 2015 14:05

The company bought a car on 30 June 2014 - its one and only car.

A P11D has not been submitted for 2014/15 but the director has entered the (correct) car benefit on his personal 2015 tax return.

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Euan's picture
By Euan MacLennan
19th Oct 2015 14:26

No defence

The director may pay tax on the BIK via his tax return, but the company will not have paid over the Class 1A NIC due on the BIK if it has not submitted a P11D(b).

Guilty as charged!

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By Mr_awol
19th Oct 2015 14:49

Was a P11D requested?  Was a

Was a P11D requested?  Was a nil return submitted?

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By JSJ54
19th Oct 2015 15:23

Thanks for your help

Euan MacLennan

The company will pay the Class 1A (unprompted - see below).It's the penalty I'm interested in.

 

Mr_awol

No requests received but no nil return submitted. No salaries paid therefore no PAYE scheme.

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By Mr_awol
19th Oct 2015 15:38

So it isn't a late return (penalties hardly ever issued unless P11D requested) but an incorrect Return.

It will almost certainly be deemed careless but if you get in there unprompted you can minimise penalties, possibly even to nil.  Personally I would get the position resolved before submitting the director's SATR in case they 'discover' it from the Return before you come clean

The maximum penalty will be £3000 but cooperation, disclosure, and honesty is your friend there.  If they wont go low enough, ask for a suspended penalty.

There'll be interest on the Class 1A

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