Penalties for late full payment submissions

The taxpayer appealed against penalties for failing to make PAYE full payment submissions (FPSs) on or before it made payments to employees for two consecutive months. The taxpayer appealed saying he did not know how to file a return when he owed no money – no tax or National Insurance was due on the payments to the employees.

The First-tier Tribunal was satisfied that the penalty had been incurred because of the late filed FPSs. However judge Richard Thomas noted that FA 2009 Sch 55 para 18(1)(c) required the penalty assessment to show the period for which it was assessed. HMRC had provided the tribunal with a specimen notice that referred to a quarter ended on 5 January which he presumed would have shown 5 July for the taxpayer.

In his view this did not reflect the periods penalised. These were for the months ended 5 June...