When is a penalty charge not a penalty?

When is a penalty charge not a penalty?

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The answer to my question above is: When its a specific charge.

Although HMRC promised there would be no penalties for late submission of RTI reports in the first year of the new regime, it appears that ‘specific charges’ will be demanded where no FPS or EPS report  has been submitted for the tax month. see: http://www.hmrc.gov.uk/news/rti-paying-hmrc.htm

The specific charge is an estimated amount of PAYE due, based on the employer’s PAYE payment and filing history. However, the employer will have to pay this charge, and will be chased by the debt collectors on behalf of HMRC, until the EPS is submitted for the tax month showing that no PAYE was due. The specific charge is not a penalty and as such cannot be appealed.

HMRC have also confirmed that employers who normally make quarterly payments of  PAYE are required to submit monthly EPS reports showing the PAYE due, (even if it is not immediately payable) for each and every month.

Have your clients received any specific charges yet?

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By julian.sims
17th May 2013 14:07

surely tax not penalty

Surely this is the same as a Self Assessment determination or a VAT Central Assessment in the absence of appropriate returns.  It is an estimated amount of tax and not a penalty.  It doesn't seem unreasonable for HMRC to have some sort of power to collect likely tax if no returns submitted.

I don't disagree that there are other problems with getting RTI up and running, but HMRC have always chased in year PAYE in estimated amounts if they felt it worthwhile.

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