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P35 penalty process

By Pamela Flores

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The delay in sending out P35 penalty notices has been addressed by HM Revenue & Customs (HMRC).
The process of informing employers that their returns are late has been revised. It had emerged that some employers were not being alerted to the penalties until September – four months after the late return.
The Notification to complete form P35 Employer Annual Return 2011/12 will be moved to mid-March so that firms receive this closer to the end of the tax year.
From 28 April 2012, HMRC will issue an Employer Annual Return Reminder where it believes a 2011/12 P35 is outstanding.
A P35 Interim Penalty Letter will be sent from 31 May 2012. It will state that the employer has incurred a late return penalty and will explain how to avoid further fines. HMRC has also improved its online guidance to help employers comply with the P35 rules.
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