At the start of the 2004/05 tax year, it became compulsory for large employers, i.e. those with 250 employees or more, to make their monthly payments to the Accounts Office electronically. If payments were not received, or not received in full, by the new 22nd deadline each month, a default notice would be issued to the employer on each occasion.

During 2004/05, the HMRC Receivables Employers Unit telephoned each employer who defaulted and explained what had caused the default and what the likely outcome would be if they continued to default. If payments were late more than twice, a surcharge penalty would be applied at the end of the tax year.

HMRC has announced that it started to issue default surcharge notices for the 2004/05 tax year.

Employers who receive a Surcharge Notice and believe it is not appropriate or is incorrect should appeal against this as soon as possible. Guidance on how to appeal is shown on the form.

...back to 21 July 2005

Source:
Large Employers Default Surcharge
Mandatory Electronic Payment

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