PAYE penalties

My client is a partnership which had an HMRC compliance visit where various errors came to light. The penalties for these errors in the firm’s PAYE records have been suspended for a period of eight months.

The partnership is aware that any other FA 2007 Sch 24 penalty will have the effect of reversing the suspension and those penalties will immediately become payable; consequently they have been very careful to ensure that their VAT returns and the partnership tax return were submitted on time.

However one of the partners also has a sole trade and he is the one responsible for the partnership PAYE system. He was notified that his sole trade was also to be the subject of a compliance visit.

Unfortunately discrepancies in the PAYE records of that partner’s own business have now been discovered and penalties were...