Penalty notice errors could affect contractors
For many contractors, receiving a penalty notice from HM Revenue and Customs is one of those things which makes their heart drop, but there is potentially good news for anyone who has received a P11D interim penalty notice recently.
HMRC have recently contacted the Chartered Institute of Taxation to let them know that they have warned some businesses for whom they had not received information by July 21st that they are likely to be charged a penalty and reminding them to file their P11D(b) as soon as possible. However, they have also acknowledged that some of these Penalty Warning Letters have been sent to employers in error, due to an ‘internal processing problem’. They are trying to resolve the issue and avoid erroneous forms going out, so although the majority of the letters going out will be correct, there may still be some which are not.
The department are recommending that anyone who receives a Penalty Warning Letter should re-send their P11D(b) form in case it has been lost en route to them. This should ensure that HMRC have the most up-to-date information available and avoid any confusion when it comes to issuing penalties correctly.
However, there are some concerns that those whose original submissions may have been lost in transit may still be penalised by the use of the date on which replacements are received. HMRC say that they will be able to accept challenges on that basis for employers who provide a written appeal stating their case.
There are also concerns that in cases where the originals were received, any duplicate could be counted as an amended return which has been submitted late, therefore still attracting a penalty. HMRC have reassured those who might find themselves in that position that they will only consider a second P11D(b) to be an amendment if the information provided differs from the original, meaning that this situation should not cause any additional penalties to be issued.
If you would rather have someone else deal with HMRC when it comes to managing your contractor tax, then using a specialist accountant can take all the stress out of the process. Our team can also provide advice on the Flat Rate VAT Scheme and any issues surrounding IR35, as well as dealing with HMRC on your behalf to remove the stress of worrying about your finances.
For more details of how our friendly and experienced team could help you, please give us a call on 01442 275789 or email firstname.lastname@example.org.