DMBM520915 - Debt and return pursuit: PAYE: E-payment: tax years 2004-05 to 2009-10 only
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Overview
Surcharge: Tax years 2004-05 to 2009-10 only
Where the employer fails to comply with MEP legislation, HMRC may impose a surcharge at the end of the tax year when the employer annual return (P35) for that year is processed.
If the monthly payment was not made, or was made late, a default notice would be sent to the employer. The rate of the surcharge increases with the number of monthly defaults.
Time limit for issue of surcharge notice
The time limit for issuing surcharge notices is within six years of the end of the year to which it relates, after which no (further) surcharges can be charged for that year
Statutory notice of requirement to pay electronically
Every large employer received a formal statutory notice on an annual basis advising that HMRC classified them as a large employer who must pay and file their return electronically. An employer had 30 days in which to appeal. These appeals were handled by Customer Operations.
From April 2010, the new late payment penalty regime removed the requirement for HMRC to issue these formal statutory notices to any employer, although any employer with 250 or more employees is still required to pay by electronic means and file their return electronically. You will find more information at DMBM520420.