I’ve noticed this week that a number of small businesses, specifically personal service companies and contractors, have been receiving notifications of fines from HMRC due to the late filing of their P35.
Companies need to file a P35 form every year which is a summary of end of year payroll returns for all employees. A company that has no employees, such as the ones mentioned above need only make a ‘Nil P35’ notice to HMRC ahead of the deadline in May.
Unfortunately the process for filing a Nil P35 notice is a little old school to say the least. Companies have to physically write to HMRC and it would appear that there has been a little lapse in their filing as a number of businesses are now receiving penalty notices informing them of £400 worth of fines when they believed it had all been sorted. It’s an odd situation as businesses that do actually have a P35 to submit can do so online.
It’s also a little strange that HMRC have waited until the fines reach £400 before writing to businesses which they could have done in May when the fine was only £100.
We’ve received almost 200 on these notices from clients and if every single case we can demonstrate that we did file on time. Unfortunately, and for whatever reason, HMRC didn’t capture this data. We are now in the process of working with HMRC to have these fines rescinded.
The good news is that there seems to be a new system on the way from HMRC that will allow companies to make Nil P35 submissions online.
If you are a ClearSky Accounting client and you receive a penalty notice don’t forget to forward this on to us so we can take care if it for you.
A quick reminder
Don’t forget, if you are due to pay PAYE tax then the deadline for it to clear in HMRC’s bank is 22nd October.