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HMRC internal manual

PAYE Manual

Employer returns: employer starter and leaver forms: employer e-file in-year penalties: dealing with appeals against failing to file online


You may receive appeals against employer penalties for failing to file PAYE starter and leaver forms online. For reference, this is an example of the Notice of penalty determination (PDF 89KB). For more information, see the Appeals, Reviews and Tribunals Guidance (ARTG).

On receipt of an appeal, follow the Action Guide at PAYE50961.

Where an employer maintains that they did not submit any paper forms, or the paper forms have been duplicated electronically, it may be difficult to determine whether the employer should be held responsible.

In order to reduce the number of e-file in-year penalty notices issued to employers and pension providers who are compliant in submitting either all, or the majority of their in-year forms online, with effect from 1 August 2012, following receipt of an appeal and subsequent review of the employer’s record, both the penalty should be discharged and further in-year penalties inhibited until October 2013, when, due to RTI, in-year notification in its current form will no longer be required.

Data Security

In order to settle some appeals it will inevitably be necessary to share information from NPS with the employer. This should always be done with data security implications in mind

  • In all cases the employer should be asked to provide information in support of their appeal before any NPS data is shared
  • Make sure that you only share information about employees with the employer if you are certain the individual either works or worked for the employer
  • Even in these circumstances, keep the amount of data you share to a minimum. Limit the information you provide to the employer to the type of form and two items, for example surname and NINO or surname and date of birth
  • If you are unable to confirm that the employee works / worked for the employer then only disclose the surname and start / leaving date