Experience of PAYE late payment penalties?

Hello,

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.

 

 

Comments
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Experience of PAYE late payment penalties?

Michele Shapland |

Rebecca Bennyworth has been lecturing on this

John Stokdyk |
John Stokdyk's picture

Thank you both.

simonp51 |

Similar issue with CIS

The Minion |
The Minion's picture

Claim that it is only the first payment is late and not paid.

bduncan |

worried by this

taxhound |
taxhound's picture

One possible angle

jonbryce |

Disproportionate argument

Malcolm McFarlin |
Malcolm McFarlin's picture

Appeal and next step the commissioners?

financialdirection |

Internal review

uroman |

"We should have checked the

simonp51 |

Internal review - the way to go

financialdirection |

Tribunal hearing today

p.seligman |

What about where an eventual repayment is expected

dhalsey |

Tribunal Hearing

julian.sims |
julian.sims's picture

Victory -  appeal successful

p.seligman |

Appeal successful

julian.sims |
julian.sims's picture

Victory -appeal successful

simonp51 |

PAYE Penalties

Handa |

Appeal

p.seligman |

Penalty cancelled

p.seligman |

PAYE Penalties

Handa |

Handa

p.seligman |

Congratulations to p.seligman!

John Stokdyk |
John Stokdyk's picture

Dina Foods

Duncan Cameron |

Internal Review

p.seligman |

Success!

simonp51 |

Late PAYE penalties

Dave Investigator |

Late Payment PAYE penalties

bookkeeper |

Your case is different to my

p.seligman |

Walton Kiddiwinks appeal

Malcolm McFarlin |
Malcolm McFarlin's picture

Test or no test - that is the question

p.seligman |

Time limit of Appeal?

dhalsey |

You can apply to the Tribunal

p.seligman |

Late appeals

julian.sims |
julian.sims's picture

Tribunal

Fredsmith1 |

.  

REvans00 |

Late Payment PAYE penalties

REvans00 |