Experience of PAYE late payment penalties?
Would appreciate any thoughts on this matter.
A company has for many years paid monthly PAYE by BACS on the same day every month that they pay the net pay for the following month. Payment goes through between 23rd & 25th rather than by 22nd.
They never realised apparently that this was late.
They had a PAYE inspection in March 2009 which went fine & the Inspector did not make any comment to indicate they were paying late & nor did he mention that shortly late payment would lead to penalties.
Last month they received a penalty notice from HMRC for 4% of the annual PAYE bill of £500K so of almost £20K.
If you calculate what late payment interest would be on around 3 days per month at, say, 5% then it would not be much over about £200.
The company appealed saying they were unaware of the new rules but HMRC has rejected the appeal saying they were sent a letter after the first month was late & they should have kept up to date via Employer Bulletins & by reading HMRC website. The company say they do not recall receiving the letter but even if they did it seems to me ludicrous to send one letter in May 2010 & then to make no further contact until out of the blue issuing a £20K penalty eighteen months later!
They are not a client of mine but I act for one of the directors & they have asked me to submit a follow up appeal to request an HMRC internal review.
I find just writing the above makes my blood boil at the sheer iniquity of it all! I can't believe that at the end of the day we won't be able to make HMRC agree there is "reasonable excuse" hopefully with just one letter but otherwise at a tribunal but I wonder if others are experiencing these penalties and if so what responses are being received to appeals?
Thank you for any comments or advice.
- Commission on holiday accrual 60 1
- error on companies house accounts 107 4
- Newly Started Practice 173 5
- Practice Company Secretarial Software recommendations please 155 2
- Sole trader startup losses and PAYE income in same year 181 4
- HMRC computer behind the times 187 3
- problems getting through to the ACCA technical helpline 82 2
- Benefit in kind calc, s.160 ITEPA 92 1
- Who's going to the next Tick & Bash? 346 6
- Is a property owner charging a peppercorn rent to a limited company acceptable 225 6
- Overtime etc for PT employees 167 2
- Generic Notification Notices 123 1
- ACCA, ACPA, IFA, ICPA 445 5
- Anti- Money Laundering - CIMA Practising Certification Application 113 1
- How do you get HMRC to refund overpaid PAYE and NIC 435 5
- RTI lost some data on laptop packing up!! 91 1
- Bank Requesting clients' tax residence 243 4
- Does This Company Need To File A Tax Return 144 1
- fraud 416 1
- Optimum salary for directors appointed part way through the year 240 3
- QROP pension input amounts 475
- HMRC BENCHMARK EXPENSES 439
- write off loan or loan to equity swap or both 416
- Sole trade business in UK, but the owner works from EU 266
- EPS and CIS deductions 260
- Construction CIS LLP Company 246
- Stamp duty on house transfer between spouses 213
- SAGE winforecast 179
- LIVE: Budget aftermath webinar 173
- Managing deliberate defaulters hmrc 166