PAYE51030 - employer returns: employer EOY penalties: manually inhibiting penalties
A penalty can be prevented from being issued automatically by
ECS by setting a penalty inhibition signal in ECS.
There are two types of penalty inhibition
- Temporary
And
- Permanent
Temporary inhibition signal
This signal
- Can only be set by the person nominated as an Authorised Officer
And
- Is set on ECS
Setting this signal will inhibit the issue of penalties
for the year specified only. If this signal is
later unset for the same year, the case will then be included in
the automatic penalty process for that year.
Cases which have been temporarily inhibited will be included
in the temporary inhibition exception lists which are displayed on
screen in ECS.
This signal may be set for a number of reasons, which
include
- In a complaint case where the issue of a penalty may be inflammatory, and you want to defer the automatic penalty process until the complaint has been dealt with
- An immediately acceptable reasonable excuse is received, and you want to prevent the issue of automatic penalties before the receipt of the annual return is recorded on EBS
- In a case where an employer return or return part received before 26 May 2005 has failed the quality standard checks and is being returned to the submitter for correction. For more information see subject ‘Correction Of Failed Returns’ PAYE40035
Permanent inhibition signal
This signal
- Can only be set by the person nominated as an Authorised Officer
And
- Is set on ECS
Setting this signal will result in the employer being
permanently excluded from the penalty process.
This signal should be set in cases where ECS is unable to
identify from information passed to it from EBS and COP that the
case is excluded from EOY penalties. For example
- Employers with diplomatic immunity
- Payment card reward schemes
Cases that have been permanently inhibited will not be included on the exception list that is created on ECS for further manual review.
