Online Filing
1.46 Examples of excuses for not filing online, and our view of them
Example one
'I did not send my Return online to avoid a late filing penalty.'
This is not a 'reasonable excuse'. There is enough time between the end of
the tax year (5 April) and the date you must file your Return online (19 May).
Example two
'My computer broke down and the data was lost so I could not file online.'
This is not a 'reasonable excuse'. Reasonable care should have ensured that
a working computer was available in time.
Example three
'All my computerised records have been lost.'
We may agree that loss of all your records in a fire or flood, or if they
are stolen, is a 'reasonable excuse'. But we will need evidence of what happened.
You will have had to have done your best - perhaps with our help - to put
together the best estimates that you could make. If you could not file online
despite doing your best to reconstruct your records, we would not charge the
penalty.
Example four
'I have suffered from serious illness or a bereavement.'
We accept that serious illness or the death of a close relative or (domestic)
partner may mean that you have to delay online filing. This is a 'reasonable
excuse'. But if you later send your Return in on paper when it should have
been filed online we will not regard your illness or bereavement as an excuse
for not filing online.
Example five
'Using a computer is too difficult. I am not computer literate.'
This is not a 'reasonable excuse'. If you have trouble using a computer, then
you should get help. You could consider using a payroll agent or bureau, who
could file online for you.
Example six
'I was under so much pressure of work that I did not have time to file
online.'
This is not a 'reasonable excuse'. If the information is available to send,
then there is no reason why it cannot be filed online before the deadline.
Remember that the penalty is for not filing online when you should, not for
filing late.
Example seven
'My agent or payroll bureau did not file online on my behalf.'
This is not a 'reasonable excuse'. You are personally responsible for making
sure that your Return is filed online.
Example eight
'I originally sent my Return in on paper, but have now sent it in again
by filing online.'
This is not a 'reasonable excuse'. If you send your Return in on paper when
you should be filing online you cannot avoid a penalty by following up later
with an online Return. The penalty applies if you do not make your Return
online. Trying to put it right later cannot alter that fact.
Example nine
'I tried filing online, but could not because I did not meet your Quality
Standards for accuracy and completeness.'
This is not a 'reasonable excuse'. You must make sure that you use payroll
software which meets our Quality Standard.
Example ten
'I did not have enough information to complete my online Return.'
We would not agree that you could not complete your online Return because
you did not have all the information you needed if we get your Return on paper.
Example eleven
'HM Revenue & Customs did not tell me that I had to file online'
We have written to every employer to tell them how online filing affects them
and when they must file online. Where our letters are undelivered, we send
them out again as soon as we have a new address. We have also publicised online
filing widely and our staff have been contacting all large and medium-sized
employers to remind them that they must file online, and offering to help
them do so.
1.47 Penalty if your Return is not complete
If your Return turns out to be only part of the information that you should have sent us, you will be liable to a penalty for an incorrect Return if the omissions were made fraudulently or negligently. This applies whether you send us the missing information later online or on paper.
1.48 Other year-end penalties
The penalty for not filing online is separate from the existing penalties for failing to make your Return by 19 May filing date, and for fraudulently or negligently making an incorrect Return.
Your Employer’s Annual Return must be with us by 19 May to avoid a late filing penalty.
The Return must be complete and accurate for all your employees and directors.
If you do not make a complete and accurate Return, you could face a further penalty. We will let you know in writing the amount of each penalty and surcharge you have to pay. You have the right of appeal against any penalty and surcharge notice you receive.
1.49 Extra Statutory Concession if you file your Return within seven days after 19 May
The law says that you must send your Employer's Annual Return by 19 May. This does not take into account our 'Extra Statutory Concession B46' which allows you up to seven more days after 19 May to get your Return to us before we charge you a late filing penalty. The Concession applies to online Returns as well as those sent on paper or by magnetic media.
The Extra Statutory Concession is meant to allow for delays in the Return leaving you and reaching us (usually by post), not to give you more time to prepare your Return or put mistakes right. So you must make every effort to get your Return to us by 19 May. Although online transmissions are very much faster than post, they are not always instantaneous. Sometimes computer problems or problems with Internet connections can cause delays in online filing.
1.50 Employees earning below the Lower Earnings Limit
Some employers prepare a Deductions Working Sheet (form P11 or equivalent) and a P14, irrespective of whether the employee's earnings were high enough to warrant one. This is okay, providing the P14 data meets our Quality Standard.
Most payroll software needs a National Insurance category letter to be put onto the payroll system. On a P14 you must use National Insurance category letter 'X' where your employee earned below the Lower Earnings Limit and put '0' in the earnings and contribution fields. If in any earnings period (say, a week or a month) your employee's earnings reach or go over the Lower Earnings Limit, you must not use National Insurance category letter 'X' on the P14, even where no contribution is taken off.
Instead, use the category letter for that employee, for example, category letter 'A'. You must also prepare a P14 for the employee because his or her earnings are at or above the Lower Earnings Limit.
Some software may be able to decide between letter 'X' or another letter
by looking at the earnings figures. You may want to talk to your software
supplier to find out what letter to use in the software if you have employees
who earn below the Lower Earnings Limit.
