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HMRC internal manual

Debt Management and Banking Manual

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HM Revenue & Customs
Updated
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Debt and return pursuit: miscellaneous charges: non e-filing penalties

Background

Electronic filing of end of year returns (P35 and P14s)

From deduction year 2004-05 large employers (segmentation 1) have had to file their annual returns (P35 and P14s) online. Where they do not they will be charged a non e-filing penalty. This penalty is charged in addition to the existing penalties that apply if the return is made late.

From the deduction year 2005-06 the non e-filing penalty applies to medium employers (segmentation 2).

From the deduction year 2011-12 the non e-filing penalty applies to small employers (segmentation 3).

Further information about non e-filing can be found on the Employer Compliance System (ECS) website, ECS Manual.

Timings

Generally, where applicable, a penalty will be raised on processing of the P35, or in the case of the 305A penalty, as a result of an Employer Compliance review.

Appeals

A 30 day appeal period applies to these type of penalties.

Appeals must be made in writing. On the day of receipt:

  • date stamp the letter with the date of receipt
  • defer next action 28 days
  • refer any appeals to the office that issued the determination.

If the case is working with another debt technical office (DTO), send a copy of the letter to the office working the case.

Electronic filing of in year forms (P45 and P46 series forms)

From 6 April 2009 large and medium employers must submit any in year forms electronically. This was extended to all employers from April 2011.

However to allow employers to be used to the new requirements no penalties were issued before April 2011.

From April 2011 penalties have been issued to large and medium employers. Small employers will start to receive penalties from April 2012

From April 2011, the amount of the penalty will be as follows.

Number of P45s or P46s filed on paper during quarter Penalty Amount
   
1 - 2 NIL
3 - 49 £100
50 - 149 £300
150 - 299 £600
300 - 399 £900
400 - 499 £1,200
500 - 599 £1,500
600 - 699 £1,800
700 - 799 £2,100
800 - 899 £2,400
900 - 999 £2,700

 

From April 2013 the penalty will be based on the following.

Number of P45s or P46s filed on paper during quarter Penalty Amount
   
1 - 49 £100
50 - 149 £300
150 - 299 £600
300 - 399 £900
400 - 499 £1,200
500 - 599 £1,500
600 - 699 £1,800
700 - 799 £2,100
800 - 899 £2,400
900 - 999 £2,700
1000 and above £3,000

Due date for payment

394 type penalties - 30 days from issue of the determination notice

305A (Commissioners) penalties - 30 days from issue of the penalty notice.

Debt pursuit actions

General

E-filing penalties are accounted for on SAFE, which will issue requests for payment as appropriate and refer unpaid debts to DTOs via IDMS for recovery action.

Penalty determinations and penalties awarded by the Commissioners are enforced by any of the usual methods.

IDMS process

These penalties follow the DMB current campaign process.

These work items are supported by all the normal IDMS functions including IDMS204, County Court Bulk Centre (CCBC) and so on.

Work items not appropriate for the automated process (holding an exception signal) will appear on C/W Miscellaneous.

Enforcement - England, Wales and Northern Ireland

In proceedings the penalty is described as ‘A penalty imposed under the provisions of the Taxes Acts’.

Particulars of Claim

Use the particulars of claim examples in the DMB Guidance Gateway.

Enforcement - Scotland

Summary Warrant.

Describe the debt as “Penalty imposed under Regulation 210 (1) The Income Tax (PAYE) Regulations 2003.

Summary Proceedings / Ordinary Cause

For details of claim of Condescendence 2 you should find the style in the disk of styles provided by the Edinburgh Group Office.

Certificate of debt

Certificates of debt are described in the DMB Guidance Gateway.

Interest

Interest is not chargeable on late payment of these penalties.

Repayment Supplement

Repayment supplement is not payable.