PAYE Penalties

jamesm96

Hi guys,

I have a client who, after a changeover of accounting staff right around P35 submission time (in 2010, this is), failed to submit their P35 / P14s for 2009/10 until 19 October 2010.

To cut a long story short, we appealed the subsequent £500 penalty on the basis that a. it was caused by a confusion resulting from having changed key personnel and, b. all of the PAYE and NICs were paid on time and HMRC therefore suffered no financial loss as a result.

After a few letters back and forth (HMRC appeared not to be receiving our letters), we received an amended penalty determination covering the period 20 May 2010 to 19 September 2010, the amended amount being £0.00.

Hurrah!... We thought. Until the client had letters from debt recovery chasing the full £500. When we wrote to them and said 'no, you've amended the penalty to £0.00' they replied and said 'no, the amended determination was sent in error, we still want the £500'.

Anyone got any good ideas for how we can sort this out?

cheapaccounting

Only HMRC can say the revised penalty was sent in error. IMO the debt company is trying it!

I would write to HMRC & debt collection - referring to the letter, saying nil is due and that action should be suspended. I would add that if they fail to close the case then you will make a compliant. Send it registered post.

You could also try to use the Agent Account Managers (AAMs):
http://www.hmrc.gov.uk/agents/aam.htm

Good luck

jamesm96

cheapaccounting wrote: »

Only HMRC can say the revised penalty was sent in error. IMO the debt company is trying it!

They've not gotten involved with a debt company, thankfully. The recovery letter was from HMRC's own debt recovery department.

cheapaccounting

jamesm96 wrote: »

They've not gotten involved with a debt company, thankfully. The recovery letter was from HMRC's own debt recovery department.

That makes it easy then - use the AAMs else make a complaint as the there has been no notification of the withdrawal of the penalty.