IR35: Computation - Question 27
HMRC's IR35 Penalty Statement says that no penalties will be sought for an incorrect return (P35) for any deemed payment for 2000/2001, as long as certain conditions are met. Has this arrangement now been withdrawn?
No. This arrangement will continue until Government Ministers announce a change. So no penalty will be sought for an incorrect return (P35) for any deemed payment as long as:
- The return (P35) is submitted by 19 May
- The return (or a covering letter) says that the IR35 legislation applies to the employer
- An amount is included in the return for the tax and NICs due on the deemed payment
- It is made clear in a covering letter that the amount is provisional pending finalisation of the deemed payment calculation
- A correction to the return and accompanying documents, notifying the
correct final amount for the deemed payment and the tax and NICs due is
made by the following 31 January and any additional tax and NICs due as
a result of the correction to the return are paid by that date.
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