HMRC has announced that around 10,000 employers have been issued with penalty notices for 2004/05 for failing to submit P11D(b) returns when, in fact, they had indicated on their form P35 that no return was due.

The explanation given for the error is that, although the fact that an employer has indicated on form P35 that no P11D(b) return is due, their system for generating the penalty notices did not have a link to that information. HMRC's systems automatically issue notices after 6 November, four months after the latest date by which the forms are due. As HMRC knows which employers are affected, the penalties will be discharged and the employers will receive a notice to that affect, accompanied by a letter of apology.

...back to 15 December 2004

Further information:
P11D(b) penalty notices issued incorrectly

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P11D(b) Return

The latest issue of the Inland Revenue's Working Together publication provides guidance on the use of the P11D(b) Return of Class 1A NICs in circumstances where the employer is not submitting any P11D returns.

If the P35 Return has been completed to show that no P11Ds are due, the P11D(b) Return does not need to be completed. The 2003/04 version of the form has been amended to make this clear.
Source: www.inlandrevenue.gov.uk/workingtogether/publications/wt-16.htm#e
...back to 20 February 2004

P11D(b) concession

The statutory deadline for submission of the P11D(b) Class 1A returns, 6 July, is well passed and payment of Class 1A liabilities was due by 19 July. Penalties may be imposed for late submission of the return and interest will be charged on the late payment of Class 1A NICs to the Collector.

As a special concession for this year only, the Revenue is extending the submission deadline for the P11D(b) return to 19 September. Returns received after 6 July but before 19 September will not be subject to the late submission penalty. However, if a return is received after this extended deadline, the penalty will be backdated to the 6 July deadline.

The concession does not, however, apply to the payment of Class 1A NICs and there is no extension to the 19 July deadline. - Payroll Briefing 206 - 19 July 2001