PAYE: 2007-08 Penalties for Outstanding P11D(b) Returns

From 16 March HM Revenue & Customs (HMRC) will start to send penalty notices where records show that you have not sent your 2007-08 form P11D(b) Class 1A National Insurance contributions Annual Return.

These returns were due by 6 July 2008. The penalty will be �100 per 50 employees for each month your return is outstanding, from 7 November 2008 to 6 March 2009, ie four months. This penalty is in addition to the one sent in November for the four months between 7 July and 6 November 2008.

If you have not sent your return, please send it without delay.This guidance sets out the information you need to complete form P11D(b).

If you receive a penalty notice that you think is incorrect you should contact the Employer Helpline whose telephone number is on the notice.

HMRC will be sending out further interim penalties later in the year where any return remains outstanding, and final penalties on receipt of a late return. The sooner your return is received the smaller the penalty will be.

Penalties issued in error - further update

We are pleased to confirm that the letters of apology have now been sent to all employers who submitted their 2007-08 P11D(b) Return of Class 1A National Insurance contributions on time, but who received an incorrect penalty notice, explaining that the incorrect penalty has been cancelled.

We have also sent out amended penalty notices confirming that the penalty has been reduced to 'nil'.

If you have not received a letter, and still think that your penalty is incorrect, please let us know by calling the telephone number shown on the penalty notice (0845 7 143 143).

We would like to apologise again for any inconvenience caused

Penalties issued in error - update

We explained on 19 November that we had incorrectly sent a number of penalty notices to employers, despite receiving their 2007-08 P11D(b) Return of Class 1A National Insurance contributions.

We have now identified the particular employers who were sent a penalty notice in error, and have arranged for these penalties to be discharged centrally. We are writing to each employer affected to confirm this, and to apologise. We will also be sending them an amended penalty notice, confirming that the penalty has been reduced to ‘nil’, as soon as the central discharge has taken place.

We would like to apologise again for any inconvenience caused to employers, their agents or payroll bureaux.

Penalties issued in error

Some employers who have submitted their 2007-08 P11D(b) Return of Class 1A National Insurance contributions online and on time have been sent a penalty notice in error. We are investigating further and will arrange to discharge any penalties that we find have been charged in error as soon as possible.

In the meantime if you have received a penalty notice and you:

sent your P11D(b) online before the 6 July 2008
have received an acceptance notice

you may wish to contact the Employer Helpline on Tel 0845 7 143 143 who will arrange for the penalty to be discharged.

We are sorry for any inconvenience or embarrassment this may have caused.

Issue of penalties

From 10 November HM Revenue & Customs (HMRC) will start to send penalty notices where records show that 2007-08 form P11D(b) Class 1A National Insurance contributions Annual Returns have not been received.

These returns were due by 6 July 2008. The penalty will be £100 per 50 employees for each month your return is outstanding, from 7 July 2008 to 6 November 2008, ie four months.

If you have not sent your return you must do so as soon as possible.

If you receive a penalty notice that you think is incorrect you should contact the Employer Helpline whose telephone number is on the notice.