Incorrect PAYE Penalty Charge Notice
Discussion
As we all know, the IR have royally screwed up by sending out a large number of incorrect Penalty Charge Notices.
One of my dormant companies was hit by this, as we are registered for PAYE despite never having traded, filed dormant with Companies House and employ just the directors at zero salary or dividends.
I appealed, and have recieved a letter in reply telling me that they will suspend the Penalty pending appeal. Is this normal? We did file a Nil return via telephone to our PAYE office back in early May 2006 and this has been confirmed by the HR.
Why can't they write it off straight away?
For the return due this year, what exactly do I need to fill out to file a Nil return by post? Just the P35? I've done it by telephone before, but since this chaos with incorrect Penalty Charge Notices this year I'm not too sure about doing it this way this year.
Lastly, how do I go about un-registering the company for PAYE? Its unlikely the company will operate within the next 12 month period.
One of my dormant companies was hit by this, as we are registered for PAYE despite never having traded, filed dormant with Companies House and employ just the directors at zero salary or dividends.
I appealed, and have recieved a letter in reply telling me that they will suspend the Penalty pending appeal. Is this normal? We did file a Nil return via telephone to our PAYE office back in early May 2006 and this has been confirmed by the HR.
Why can't they write it off straight away?
For the return due this year, what exactly do I need to fill out to file a Nil return by post? Just the P35? I've done it by telephone before, but since this chaos with incorrect Penalty Charge Notices this year I'm not too sure about doing it this way this year.
Lastly, how do I go about un-registering the company for PAYE? Its unlikely the company will operate within the next 12 month period.
The Revenue have no real authority to accept "telephone" filing. The only valid route to take is to file the completed paper P35 or file on line.
As there was no tax at stake (there being no salaries and no resultant PAYE or NIC) part of the grounds for your appeal is that the penalty is excessive given the size of the tax "lost" to the Revenue.
If you haven't done so yet, I would STRONGLY advocate filing a written appeal against this penalty stating clearly the grounds of the appeal.
I always say to myself in these circumstances - what is your accountant up to on this.
As there was no tax at stake (there being no salaries and no resultant PAYE or NIC) part of the grounds for your appeal is that the penalty is excessive given the size of the tax "lost" to the Revenue.
If you haven't done so yet, I would STRONGLY advocate filing a written appeal against this penalty stating clearly the grounds of the appeal.
I always say to myself in these circumstances - what is your accountant up to on this.
Eric Mc said:
The Revenue have no real authority to accept "telephone" filing. The only valid route to take is to file the completed paper P35 or file on line.
As there was no tax at stake (there being no salaries and no resultant PAYE or NIC) part of the grounds for your appeal is that the penalty is excessive given the size of the tax "lost" to the Revenue.
If you haven't done so yet, I would STRONGLY advocate filing a written appeal against this penalty stating clearly the grounds of the appeal.
I always say to myself in these circumstances - what is your accountant up to on this.
As there was no tax at stake (there being no salaries and no resultant PAYE or NIC) part of the grounds for your appeal is that the penalty is excessive given the size of the tax "lost" to the Revenue.
If you haven't done so yet, I would STRONGLY advocate filing a written appeal against this penalty stating clearly the grounds of the appeal.
I always say to myself in these circumstances - what is your accountant up to on this.
Hi,
I have written to appeal the penalty on the same day it was received.
I telephoned my local PAYE office this time last year to ask for advice given that we had no figures to return based on zero trading activity and zero salaries. The advisor I spoke to told me that he could note a Nil return over the telephone and had made a note on the system. (He then went on to tell me this meant I did not have to file by paper or online as I have nothing to file).
This note is evidently still in place as when I managed to get through to someone at another PAYE office (Mine has been closed and forwards me on to the Employer Helpline), they told me they had a record that I had contacted them last April/May to supply a Nil return.
Evidently it is not proper practice to file a Nil return via the telephone, but I was only following instructions given to me from the telephone advisor working at the then local PAYE office!
I don't currently employ the services of an accountant as (until now) the process of 'running' a number of dormant companies has been very straight forward.
You were lucky.
The system worked in that the telephone conversation had been properly recorded at their end. This is not always the case.
If they had denied that they had ever received a telephone call on this matter, unless you had some documentary proof that the conversation had taken place - with supporting dates and names - then you would be in trouble.
The system worked in that the telephone conversation had been properly recorded at their end. This is not always the case.
If they had denied that they had ever received a telephone call on this matter, unless you had some documentary proof that the conversation had taken place - with supporting dates and names - then you would be in trouble.
Eric Mc said:
You were lucky.
The system worked in that the telephone conversation had been properly recorded at their end. This is not always the case.
If they had denied that they had ever received a telephone call on this matter, unless you had some documentary proof that the conversation had taken place - with supporting dates and names - then you would be in trouble.
The system worked in that the telephone conversation had been properly recorded at their end. This is not always the case.
If they had denied that they had ever received a telephone call on this matter, unless you had some documentary proof that the conversation had taken place - with supporting dates and names - then you would be in trouble.
Had a letter on Saturday to confirm the Penalty notice has been reset to £0, ie cancelled. Excellent news.
Now I have a small dilemma.
I sent them a letter on the 14th April asking whether to file a Nil return for 06/07 tax year, or whether the included delcaration that we do not need to file a P35 (as we meet the criteria) was sufficient.
No response to this letter yet, but along with the penalty notice amendment we received was a letter describing the criteria we have to meet to enable us to not require sending in a P35. If we met this criteria for 06/07 I have to let them know, which is what I did in my letter dated 14th April.
Not sure whether or not to send a Nil return in by post or wait until I have had a response to the letter, as they will probably 'cross in post'.
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