Submitted on Monday 24th October 2011
Published on Thursday 15th December 2011
Current status: Closed
Closed: Saturday 15th December 2012
Signatures: 2
Small Business and HMRC: harmonise and humanise the system of penalties for late (or missing) returns - PAYE end of year return
The penalty for late submission of PAYE returns should be human as for VAT, first a warning letter, then up the scale for repeat offences (e.g. over the next 3 years). Raise the upper limit to £200,000 to help small business growth. HMRC should have a duty of prompt notification to minimise penalties, or be obliged to reduce penalties for THEIR lateness. *** If businesses with a turnover of less than £150,000 fail to make a quarterly VAT return on time they are warned. If they reoffend within a year they are put into an escalating system of penalties, not necessarily including fines. This is fair. *** If that small business makes its annual PAYE return (P35 and P60s) late, it is instantly fined £100 per month, even if all employees (e.g. husband and wife) are paid below the ET (ST 2011-2012) so no PAYE or NI is payable by employee or employer (to minimise administration) - and because "HMRC are so busy", not informed for months when the penalty is already £400 or £500. This is unfair.
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18.217.145.189 Mon, 18 Nov 2024 12:38:46 +0000