PAYE penalty

A client had PAYE end of year returns outstanding for the years 2006/07 2007/08 and 2008/09.

While the 2006/07 return was filed online in March 2010 those for 2007/08 and 2008/09 were filed in June 2010. These returns were filed following a notice that HMRC would be making a compliance visit.

The client did not have any tangible reason for filing late other than the usual cashflow problem excuse. HMRC obviously charged the usual fixed penalties which have been paid.

Following the compliance visit the officer is seeking to charge tax-geared penalties under TMA 1970 s 98A(2)(b). He is charging at a rate of 20% and has issued a determination covering the three years in question. This has initially been appealed against giving the reasons as: ‘the determination is not in accordance...