Councils can have P35 penalty withdrawn
In February, HMRC issued guidance requiring parish councils that were not already registered for PAYE to register from 2011/12 onwards.
Some councils mistakenly followed the guidance before 6 April, not realising it would mean they would have to submit a P35 employer annual return for 2010/11.
The error caused some parishes to incur a liability to penalties for non-return of a 2010/11 P35, when in fact none was due.
HMRC say they are ‘sympathetic’ to the situation and advise any council that receives a penalty notice for non-submission of a P35, as a result of erroneous circumstances, should write to Ian McDonald at BP4009, Chillingham House, Benton Park View, Newcastle-upon-Tyne NE98 1ZZ, to ensure the charge is cancelled.
