Latest News

May 2012

HMRC defends confusing P35 reminder letters

HMRC has defended its policy of sending out PAYE end of year reminder letters even when P35s have already been filed on time for 2011/12.

The letters have been introduced following a review by the Revenue into the unfair practice of letting P35 late penalties build up before issuing them.

However they are sent out to everyone, even where a P35 has already been filed online.  In some cases, letters were delivered to clients who assumed the P35 had already been filed on their behalf.   

Kerrie Lucas, Prime's Payroll Manager said "We have received a large number of calls from clients advising they have received letters and in each case, we have confirmed that their P35 submissions have been successfully received.  If we handle your payroll, and you wish us to confirm your P35 submission, then please do contact us".

A spokesperson from HMRC have confirmed that they are simply reminder letters, and that it does clearly state at the end 'if you have already filed your return online or told us that a return is not due, thank you; no more action is needed.  If you have not, please act now".

He also added that despite many people receiving letters dated two weeks back this was because they were all dated 29 April but sent out in batches.

Penalty notifications

The revised timetable for P35 return reminders and penalty notifications can be found on HMRC's website here

From 31 May a 'P35 Interim Penalty Letter' will be issued over a five day period so that it reaches employers within a month of the filing deadline of 19 May.

The letter will state that the employer has incurred a late return penalty and explain what to do to avoid it increasing.