HMRC has sent about 12,500 penalty letters in error to employers who had filed their payroll returns for 2013 to 2014.
The Revenue said nearly 10% of penalty letters sent were to employers who had filed their PAYE information for the tax year ending 5 April 2014 because its computer system didn’t recognise returns had been submitted in four situations:
- A month 12 Full Payment Summary with zero financial values, declaring final submission for the year
- A month 12 Employer Payment Summary (EPS) with zero financial values, whether or not declaring final submission for the year
- A month 12 EPS claiming CIS deductions suffered
- An “Earlier Year Update” with zero financial values
An HMRC spokesman apologised for any inconvenience caused by the penalty notices sent in error.
He said HMRC will have updated its system before the end of August for the issue of the interim penalties in September.
“We are also updating all the employer records involved, and no further action is needed by employers," they added.
All other employers should send their PAYE information for the tax year ending 5 April 2014 as soon as possible, HMRC said.
Errors in payroll tax bills have caused hassle for the clients of Accounting WEB subscribers. Experts have blamed new payroll software.
About Nick Huber
I’m a specialist business journalist and have a particular interest in tax and technology.