P35 penalty if a repayment is the result

P35 penalty if a repayment is the result

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Just realised that a 2011-2012 P14 and P35 has been filed without entries for Statutory Maternity Pay having been made.  This will result in a repayment of approx £900 being due to the very small employer.  HMRC site advises that "amended information means that your original return was either incomplete or inaccurate and could mean that you may be charged a penalty".  Has anyone any experience of the word "may" in a situation like this?  Do you think a penalty would only be levied where the employer had underpaid HMRC? 

Replies (4)

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By Moonbeam
06th Jan 2013 14:15

The way to minimise penalties...

is to be upfront with HMRC asap, giving chapter and verse of which figures should be adjusted.

Recalculate what total Paye should have been versus what was actually paid and get the employer to pay the difference now, quoting accounts office ref, and the correct y/e date (see HMRC website on how to pay PAYE) for exact details.

I am not sure whether there is an option on the website to amend previous yr P35 figs. If not  you will need to write to the appropriate office - see HMRC site for address.

If you correct an error without prompting there is much more chance that you won't get a penalty at all, but nothing is definite, so act as quickly as you can.

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By yeboyye
06th Jan 2013 18:02

Could/should a penalty be charged?

Moonbeam many thanks for your reply.  In this case there will be no more PAYE etc to pay to HMRC but HMRC will need to refund Statutory Maternity Pay to the employer.  It doesn't seem right that a penalty could be incurred, and that is why I raised the question, but of course you never know.  There is a paragraph on the HMRC site entitled "amending your return after you've filed it" and that is where the quote written in the question comes from.

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By ash428
06th Jan 2013 18:29

I don't think so...

I have only recently had to go in an amend 3 years worth of P35's for a client. HMRC have not written to me nor the client regarding penalties and those to resulted in a repayment of c£3000. Fingers crossed you should be OK.

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By yeboyye
06th Jan 2013 19:56

P35 penalties

Thanks to you too ash428.  The amendment needs done so I suppose there is a possibility that we may have to battle it out with HMRC in due course.

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