P35 Penalty Alert

Software provider causes employers to receive late filing penalties

HMRC have issued a statement that they are aware that a very small number of employers, using products from one software provider, have been issued with penalty warning notices because of a failure to submit their 2012-13 Employer Annual Return (P35 & P14s) on time.

Those employers affected are those who:

• use two products of one particular software provider
• were not in the RTI pilot
• made their 2012-13 end of year return submission after 6 April 2013
• used 2012-13 PAYE Real Time Information software to complete their P35 and P14s
• sent an Employer Payment Summary by 19 May to HMRC instead of their P35 and P14 Employer Annual Return

Employers that took part in the RTI pilot are not affected by this issue.

By now, customers should have received an e-mail from the software provider providing detailed guidance on how to file their 2012-13 Employer Annual Return if this still remains outstanding. If the return is overdue then employers that meet the above criteria and have been issued with a penalty notice, should submit their Employer Annual Return by 25th June.

HMRC will cancel the penalty notice where the P35 is submitted by 25th June. The penalty however will still stand if the P35 and P14s are not filed by this date.

Any employer that is affected by this issue and has sent in their Employer Annual Return during the interim period will also have their penalty notice cancelled.