PAYE late filing fine?

[UKSBD]

2 weeks ago my account sent me a form to sign to approve them filing my end of year PAYE online.
I signed it, returned it, and thought nothing more of it.

I've just gone through my answerphone and had a message from Monday saying they haven't received it and that it needs to be filed before Wednesday (today).

I haven't spoken to them yet, so have no idea if they have done it or not,
What happens if I phone them tomorrow, give them my approval, and they do it tomorrow. Will I still get fined, and if so, how much?

 

[David Richards]

What happens if I phone them tomorrow, give them my approval, and they do it tomorrow. Will I still get fined, and if so, how much?

If they file it tomorrow, you shouldn't get a penalty.

HMRC give what they call an 'extra-statutory concession'. This means that even though the filing deadline is 19 May, so long as the PAYE return is filed within 7 days of the deadline, they won't apply the penalty.

 

[Tom McClelland]

If they file it tomorrow, you shouldn't get a penalty.

HMRC give what they call an 'extra-statutory concession'. This means that even though the filing deadline is 19 May, so long as the PAYE return is filed within 7 days of the deadline, they won't apply the penalty.

I know they've done that in the past, when their servers have been very clogged and people have genuinely found it hard to file online. Are you certain that the concession applies this year?

 

[David Richards]

I know they've done that in the past, when their servers have been very clogged and people have genuinely found it hard to file online. Are you certain that the concession applies this year?

As far as I understand it, it isn't something that HMRC activate on a selective year-by-year basis - it's something that 'just is', althoug, of course they could withdraw that concession at any time in the future. It's hidden away in the HMRC manuals as ESC B46.

As you say, HMRC have highlighted the concession when there have been major problems with online filing. Other than that, HMRC don't seem to mention it much; I guess they don't want everyone to delay filing until 26 May.

 

[UKSBD]

Thanks, I'll get on to my accountant in the morning, and if necessary go in and sign the approval form for them, so they do it online tomorrow as well.

 

[Dim63]

David

The concession that you you quote refers to COTAX, HMRC's computer system that handles Corporation Tax. If memory serves me right, this concession only applies to CT returns and does not extend to the likes of PAYE returns. (That's not to say there may not be other relaxations or concessions out there but it would be dangerous for anyone to rely on this one.)

David

 

[Jenni384]

I've heard it applies to P35s etc this year too, seen a number of discussions about it.

 

[UKSBD]

I just phoned my accountant and fortunately they just went ahead and filed it anyway, so no problems.
thanks anyway all.

 

[David Richards]

The concession that you you quote refers to COTAX, HMRC's computer system that handles Corporation Tax. If memory serves me right, this concession only applies to CT returns and does not extend to the likes of PAYE returns.

B46 is a concession regarding "Automatic penalties for late company and employers' and contractors' end-of-year returns". As I said, it is a concession and not something to be relied on - but it seems appropriate for the kind of situation that the OP described.

 

[Bob]

From HMRC website posted 20/5/2010

 

[billy buntin]

If they file it tomorrow, you shouldn't get a penalty.

HMRC give what they call an 'extra-statutory concession'. This means that even though the filing deadline is 19 May, so long as the PAYE return is filed within 7 days of the deadline, they won't apply the penalty.

be careful of this assumption, its not a statutory concession, this concession can be taken away any year hmrc decide to withdraw it, although you may not get fined, it will still be classed as a late return and if you do this on a regular basis each year and for eg have cis scheme where you do not pay either the 20 or 30 % tax bracket, this can be revoked

 

[Tom McClelland]

be careful of this assumption, its not a statutory concession, this concession can be taken away any year hmrc decide to withdraw it, although you may not get fined, it will still be classed as a late return and if you do this on a regular basis each year and for eg have cis scheme where you do not pay either the 20 or 30 % tax bracket, this can be revoked

my understanding is that this concession will NOT be available in 2010-11. The stated reason is the success of internet filing making filing on time much easier for employers, since nearly everyone is operating payroll software that makes filing pretty easy anyway.

I guess that they may catch a lot of people the first year. For some reason plenty choose to file during the ESC week.

 

[David Richards]

be careful of this assumption, its not a statutory concession, this concession can be taken away any year hmrc decide to withdraw it, although you may not get fined, it will still be classed as a late return and if you do this on a regular basis each year and for eg have cis scheme where you do not pay either the 20 or 30 % tax bracket, this can be revoked

It was an extra-statutory concession (ESC B46); i.e. not one in law, but one offered by HMRC to allow for any postal delays. It meant that if a return was received within 7 days if the due date, it would not be classsed a late return.

Now that online filing is compulsory for many returns, the basic reason for that extra-statutory concession no longer exists. So Tom is right; ESC B46 will be withdrawn on 31 March 2011. So your next payroll year-end return must be filed by 19 May 2011.