Submitted on Monday 24th October 2011
Published on Tuesday 25th October 2011
Current status: Closed
Closed: Thursday 25th October 2012
Signatures: 3
Small Business and the HMRC: harmonise and humanise the penalty system for late (or missing) returns - PAYE annual 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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18.118.163.176 Mon, 18 Nov 2024 12:18:59 +0000