Real time problem

Penalty for not filing real time information return

The taxpayer failed to file a final electronic return under real time information (RTI) for 2013-14. HMRC issued a penalty. The taxpayer appealed. Its grounds were that it employed only four people and according to HMRC’s instructions on PAYE in RTI it did not have to submit a return online unless it had more than nine staff. It said it had asked HMRC for a paper form but did not receive one.

After it had been told about the taxpayer’s appeal to the First-tier Tribunal the Revenue wrote to the taxpayer explaining that even though it was a business with fewer than nine employees it had to report PAYE in real time and that a paper P35 no longer applied. HMRC added that if the taxpayer sent the form within 30 days it would review...