Incorrect PAYE penalties

Earlier in October HMRC announced that they had incorrectly sent a number of penalty notices to employers despite receiving their 2006-07 employer annual return (see Update 11 October 2007 page 387).

They have now identified the particular employers who were sent a penalty notice by mistake and say that the error is confined to online returns and mostly affects those sent to HMRC on 17 May.

HMRC have arranged for these penalties to be cancelled centrally and are writing to each employer affected to confirm this and to apologise.

HMRC have added that affected employers will know from their online receipt if their return was made by 28 May. If it was they say that there is no need to take any action by way of an appeal or otherwise.

The key point says Baker Tilly is that employers whose agents have spent time sorting...