HMRC has issued a note to explain what penalties apply if employers fail to file their P35s electronically for 2009/10.

Under Regulations that came into force on 13 August 2009 (Statutory Instrument 2029/2009). All employers are required to file their 2009/10 Employer Annual Return online by 19 May. 

There are exceptions for certain “care and support” employers and practising members of religious societies whose beliefs are incompatible with the use of electronic communications.

The Regulations also determine the penalties that may be charged for the tax year ending 5 April 2010, where an employer does not act in accordance with the Regulations:

  • For employers with 1-5 employees the penalty is £nil.
  • For employers with 6=49 employees the penalty is £100
  • For larger employers and 2009/10 and 2010/11 rates in full, see Penalties: PAYE failure to file online.

Should an employer with 1-5 employees not file their 2009-10 Employer Annual Return online as required by law, HMRC will write to them, remind them of their obligations and explain where they can get further help and guidance to ensure they file their return correctly in future.

Late filing penalties will also apply when a return is received after its dues date (for form P35 that is 19th May).

Thank you to HMRC for responding so swiftly and following up last week's article this topic.