2006-07 Employer and Contractor Annual Returns

Interim penalties for outstanding returns

From today we will start to send penalty notices where our records show that we have not yet received your 2006-07 form P35 Employer’s Annual Return and form P14 End of year summary and, where due, a 2006-07 form CIS36 Contractor’s Annual Return. These are a follow up to the penalties issued in September.

These returns were due by 19 May 2007. The penalty will be £100 per 50 employees and/or subcontractors for each month your return is outstanding, from 20 September 2007 to 19 January 2008, ie 4 months. This penalty is in addition to the one sent in September for the four months between 20 May and 19 September. We will not issue a penalty where an appeal has been received against the first interim penalty (covering the previous four months) and is still outstanding.

If you have not yet sent your return, you must send it as soon as possible. Or contact your HM Revenue and Customs (HMRC) office and tell us if you do not have to make a return for 2006-07 ie you had no employees during 2006-07. That will help us to update our records and prevent further penalties being sent to you. We will also cancel any penalty already issued and notify you accordingly. If you had fewer than 50 employees, and have to send a return (because you have tax, National Insurance or Student Loan information to declare) you may still file your return online. You will still get £150 tax-free, even though your return is late.

We will be sending out further interim penalties later in the year where any return remains outstanding, and final penalties on receipt of a late return. The sooner we get your return the smaller the penalty will be.

You may think that the penalty is wrong. If you want to appeal against the penalty notice, you must write to the office shown on the notice within 30 days stating why you think the penalty is wrong.