P35 Time limit on investigations

P35 Time limit on investigations

Didn't find your answer?

Does anyone know if the 9A time limit of one year applies to P35s & the associated paperwork?

HMRC have been persuing "Informal" means of gaining information about an 11/12 P35. I have stood firm & requested it is dealt with in a formal manner & was then hoping to tell them it is out of time. However I can not find any specific legislation to refer to. I am sure from the various seminars at the time when these provisons came in that it is one year but would be grateful if someone would confirm this & point me in the right direction.

Steve

Replies (2)

Please login or register to join the discussion.

avatar
By Paul Soper
11th Jun 2013 22:32

Discovery?

The problem is that there is a time limit for commencing a formal investigation but sometimes it can become meaningless. If the officer makes a discovery he or she can raise assessments over a period of up to 4 years, 6 years if careless can be shown, 20 years if it was concealed from them - so how much information was shown on the return?  Is it sufficient to protect the client from a discovery assessment (incidentally the revenue power to gather information for these purposes is usually via s20 not s9A).  In particular what answers were given to the controversial questions concerning service companies on the return?  Who knows you could be the hero to test whether HMRC are legally entitled to ask those questions!

The P35 is not a self assessment return and so is not subject to the same investigation strictures (or indeed s9A) but HMRC have the same powers concerning discovery and assessability, albeit by way of determination upon the employer, with liability upon the employer in the first instance.  Only under limited circumstances can such a liability be transferred from the employer to the employee, although HMRC will try to avoid this aspect of the issues involved.  Liability can be imposed on employees where a genuine mistake is made, or where an employee knowingly receives sums that an employer willfully failed to make deduction from and this act of transferring liability releases the employer from obligation.

Thanks (0)
avatar
By stevebaker22
11th Jun 2013 19:56

Nothing that sexy
The bookkeeper had been calculating the PAYE wrong & there is a significant repayment due. We corrected it in time for the p35 but HMRC demanded a long shopping list of information. My fight was I wanted them to open an official enquiry & I am hoping now that its out of time so we can claim the refund & move forward.

Thanks (0)