PAYE Penalty appeal - next step

PAYE Penalty appeal - next step

Didn't find your answer?

An application for a PAYE scheme was made in January 2011, but none was set up by HMRC. When we came to file the P35 we were unable to because we had no PAYE reference so had to re-apply and by the time that we got these then we were late filing. On the appeal to HMRC we sent the evidence of the first application but this was turned down because "we did not file the P35 on time"

Replies (4)

Please login or register to join the discussion.

John Stokdyk, AccountingWEB head of insight
By John Stokdyk
02nd Sep 2011 13:18

Do you and your client have cover to fund a tribunal case?

Other members with more direct experience of these situations may be able to help you negotiate with the tax office, but a string of recent tribunal decisions on reasonable excuse suggest that judges are taking a firmer linke on the legality of HMRC's application of late payment penalties.

Suggest you also raise the Jusilla v Finland decision at the European Court of Justice, which held that tax penalties required an equivalent level of "beyond a reasonable doubt" proof as a criminal prosecution.

Even from the outline description of your client's circumstances, my feeling is that HMRC is on shaky ground. But I'm no tax lawyer.

Thanks (0)
avatar
By pauljohnston
05th Sep 2011 12:16

HMRC failing to set up paye scheme

Sadly I have to report that this has happened to our clients.  We now apply on line because we get an acknowledgement email on completion of the submission almost immediately.

Thanks (0)
avatar
By seonaid anderson
05th Sep 2011 13:18

Paye penalty appeal

You can also ask the Inspector who turned down the appeal to  refer his decision for independent review within HMRC.( and in this letter refer to the recent tribunal results regarding the definition of reasonable excuse).    The process can take some time ( from memory they have 30 days to allocate the case and then 90 days to review it) but as long as your client is prepared to wait it can be a far cheaper option than a tribunal. 

( If you get  close to the end of the 90 days remember to remind the allocated officer as if they don't finish the review in time the original decision stands and the only way to offset it is to go to tribunal after all)

Seems biased in HMRC favour but I have had a good result with this in a corporation tax dispute.

 

 

 

Thanks (0)
avatar
By Deanivy
05th Sep 2011 13:27

Go to Tribunal

I have no time for the review and appeal procedure that is operated by HMRC.  They never seem to answer the points you make and just turn you down.  I went to Tribunal last year and it was very easy I just completed the forms on line and went along with the client.  I was slightly put off by the Revenue sending 2 people! it took about 20 minutes and we won easliy.  Bolstered by this I applied for another one to go ealier this year and after the forms had been submitted the Revenue backed down.

I am a sole practioner so my cost structure is low  (costs were about £300) but the benefits of winning and the client telling people what you did are like they say in the Mastercard advert......

Thanks (0)