P35 P14 Non Trading Company - Help

P35 P14 Non Trading Company - Help

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MKH9130

Original Poster:

4,121 posts

209 months

Friday 23rd March 2007
quotequote all
I received a letter from the IR this time last year, asking me to file P35 and P14 employer returns regarding my Limited company.

As my company had not yet traded since its conception 18 months previously, I contacted my local IR office dealing with PAYE (Chichester) by telephone and was told that a non-trading company did not need to file P35 and P14 returns and that "he would make a note on the computer". I was told catagorically that no further communication was needed now that I had contacted them.

Today I have received a Penalty Charge from the IR to the tune of £900 for (£100 per month) for not submitting my P35 and P14 returns to them last year!!

What would you now advise? The local PAYE office (Chichester) has now closed and I am told to telephone an 0845 number, which I have - about 20 times, and it is constantly engaged.

Eric Mc

122,142 posts

266 months

Friday 23rd March 2007
quotequote all
If you do not plan on using the company in the foreseeable future, why not apply to have the company de-registered for PAYE purposes. Inform the Revenue (in writing) that at no time did the company pay any remuneration to directors or staff and consequently never had any PAYE or NI liabilities for the period covered by the P35/P14s which have given rise to the penalties.

Were P35s ever sent out by the Revenue?

justinp1

13,330 posts

231 months

Saturday 24th March 2007
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By a bizarre coincidence, I have also had a letter in the post this morning - Dated March 12th, asking me for £900 too.

It is nice for them to delay delivery over the deadline for the next month, so I guess they want £1000 now...

I returned my P35 when it was due... And this £900 penalty is the first I have heard that there was a problem! Whats going on!!!???

Eric Mc

122,142 posts

266 months

Sunday 25th March 2007
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Funnily enough, in Saturday's post I also received a penalty notice for £900 in respect of a client's "late" 2005/06 P35. The strange thing is that the company did not set up its PAYE scheme until after April 2006 so was never issued a 2005/06 P35 in the first place.

This whole thing seems to smack of some massive HMRC computer cock-up.

I shall be phoning the Revenue tomorrow to try to get to the bottom of this. I'll let you all know what I find out.


Edited by Eric Mc on Sunday 25th March 11:39

Mattt

16,661 posts

219 months

Sunday 25th March 2007
quotequote all
Eric Mc said:
This whole thing seems to smack of some massive HMRC computer cock-up.


Surely not!!!!

I once got a strange letter through regarding CT, so I rang up asking to speak to the tax inspector listed on the letter - along with '000 other people who had been sent strange letters with his name on it rofl

fast_al

25 posts

212 months

Monday 26th March 2007
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Yep got one of these for one of my dormant companies too!

Eric Mc

122,142 posts

266 months

Monday 26th March 2007
quotequote all
I was able to get through to someone (eventually) and they have agreed to discharge the Penalty. However, I will probably write the formal appeal anyway - just to comply with the rules.

This, I think is what has happened.

The Revenue PAYE computer has decided that EVERY limited company that was in existence at 5 April 2006 needed to submit an employers end of year return (P35) EVEN IF THE COMPANY WAS NOT, AT 5 APRIL 2006, REGISTERED FOR PAYE. Therefore, even if a blank 2005/06 P35 was never sent out to the company, the computer is deeming the company to have been late in filing it.

Now, in my cynical view, I am pretty sure that this is a deliberate ploy by the Revenue to trip up unsuspecting small companies rather than (as I originally thought) a bona fide computer glitch.

The tax district I was dealing with is Surrey and North Hants - although the actual office is now based in Edinburgh.
If anyone is having problems getting through on the telephone this morning (I bet there are thousands trying to find out what on earth is going on), I tried the following numbers:

0845-7143143 - the contact number on the Penalty Notice (this was permanenetly engaged)

0845-6070143 - the New Employer Help Line. I got through on this number but the only advice the chap could give me was to make a formal appeal in writing. However, because I whinged at him for a bit, he gave me a direct line through to the Edinburgh tax office (this is probably a well kept secret, normally) which was

01592-222604 - the lady I spoke to there was able to cancel the Penalty Notice on the spot.

I hope the above experience may be of some help.


Edited by Eric Mc on Monday 26th March 09:35

MKH9130

Original Poster:

4,121 posts

209 months

Monday 26th March 2007
quotequote all
I spoke to a lady at the Edinburgh office as above this morning, she wasn't able to directly help me (as I am Sussex area who now operate through the employee helpline - direct line was 01243 813813 but this is no longer working) but explained that 11,000 of these letters had been sent out many in error.

I have written to them to appeal the charge on Friday so will wait and see what the response is. The have a note on the system that I filed a nil return last year over the phone so hopefully everything will be dandy.

Thanks for the posts above. My first 'brush' with the Inland Revenue. Why do they have to make things so complicated. 0845 numbers that don't work, local area numbers that are no longer in use and so on!

thewave

14,712 posts

210 months

Monday 26th March 2007
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Just been on the phone to Norfolk Area regarding 3 of these that landed on the mat this morning.

I've had a little moan about an apparent automated system, that cannot tell within a day of when a penalty notice should have been issued, NOT months down the line. Also, the letters are all dated 12-Mar-07, and today is...yes...the 26-Mar-07, two weeks!.

The first was a company that had been incorporated on the 27th March 2006, and still they managed to issue a penalty for non submission. No scheme was needed, no references, P35 or reminders have been received (which revenue said they sent out for all three, but I have two P35's on file)

Anyway, she seems to accept there is a problem, and I've already written my appeals. Believe it or not, two of them were submitted online, and I have e-mail confirmation to back it up. What a superb system.

groomi

9,317 posts

244 months

Monday 26th March 2007
quotequote all
Same situation here except we have been trading and payign PAYE for six years so it can't just be and error for new PAYE set-ups. Mine was filed online however, so I expect this is where the error has occured...

Amazing, a Government IT project which still doesn't work?! rolleyes

Eric Mc

122,142 posts

266 months

Monday 26th March 2007
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It seems to have failed in a number of areas.

Companies who are not registered for PAYE are being fined.

Companies who actually DID file their P35s before the 19 May 2006 deadline are being fined.