Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

PAYE Manual

From
HM Revenue & Customs
Updated
, see all updates

Employer returns: employer EOY penalties: responsibilities for handling EOY penalties

This subject is presented as follows

 

Background

The division of work for raising and collecting penalties is split between

  • The Processing Office
  • The Network Units (SAFE) at Banking Operations

And

  • The Debt Management Office

The Processing Office

The Processing Office is responsible for

  • Raising a penalty determination in each appropriate case following receipt of the annual return
  • Raising an interim penalty determination shortly after 19 September in each appropriate case where the annual return is still outstanding. For more information about interim penalties see subject ‘EOY penalty cycle’ PAYE51020 
  • Raising further interim penalty determinations at intervals where the return remains outstanding
  • Notifying charges to the appropriate Banking Operations Network Unit (SAFE)

Banking Operations Network Unit (SAFE)

Banking Operations Network Unit is responsible for

  • Keeping records of each employer where a penalty charge is raised
  • Noting a penalty as ‘Local Action’ (LA) and referring it to the Debt Management Office where an interim penalty determination is not paid or appealed against within the 30 day appeal period. For more information about interim penalties see subject ‘EOY penalty cycle’ PAYE51020 

The Debt Management Office

The Debt Management Office is responsible for

  • Pursuing the collection of outstanding penalties referred by Banking Operations Network Unit
  • Contacting the employer or contractor to obtain payments on receipt of a Local Action Notice (LAN) from Banking Operations Network Unit