PAYE Ye Returns - 2 years out of date

stefanboro Registered Posts: 187 Dedicated contributor 🦉
A little bit of guidance needed.

Luckily, I have always encountered companies that are up to date with payroll. However, I now have a company that has not submitted any PAYE returns for 2 years and has not submitted ANY p45's / P60's despite it employing around 13 people and has had people come and go etc.

I have managed to dig out most of the relevant records I will need but I just have two core questions:

1. I can obviously file P45 Part 3 and P46's for these employees despite the fact that they have been working for quite a long period of time can't I? There are no speical rules in respect? Just put the relevant dates they started employment etc?

2. What should I advise the company to expect in regards to fines / inspections. I have read a bit on this from HMRC's website but I am interested to read the anecdotal experiences of MIP's.



  • payrollpro
    payrollpro Registered Posts: 427 Dedicated contributor 🦉

    Just about every employer starts off with the same penalties, usually one figure per return not filed, plus any charges for tax lost, interest and penalties on top. The final figure is down to your negotiating skills.

    I would tend to bring everything up to date as soon as possible, filing each return in sequence and keep note of those returns which did not need to be filed on line, your client is not liable for on line filing failures unless it was mandatory.

    I would also be ready with reasons, not excuses because will not get you anywhere, but if there are good reasons for the failures then state what they are.

    It is possible that HMRC will accept all the returns and concentrate on accounting for everything and not come back over the matter, but don't bank on it. I'd assume a couple of hundred per form plus the standard fines for failing to file the y/e return plus whatever applies to late payments.

  • stefanboro
    stefanboro Registered Posts: 187 Dedicated contributor 🦉
    Thanks Payrollro - I was hoping you'd reply!
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