PAYE payment booklets, 2010/11 P11D(b) penalties and preventing illegal working
HMRC has issued its latest update on employment tax matters, aimed at agents and employers. It covers the following topics:
1. PAYE payment booklets: Booklets for 2012/13 have now been sent to existing employers and new employers who registered on or before 16 December 2011. Those who registered later than this will get their booklets in April. However, employers are encouraged to pay online.
2. Late forms P11D(b) for 2010/11: From 12 March 2012 HMRC will start to send out the second interim penalty notices where its records show that an employer has not sent in form P11D(b) (Annual Return of Class 1A National Insurance Contributions due) for 2010/11.
3. Preventing illegal working: Employers are reminded that they must check that people have the right to work in the UK before taking them on. HMRC explains what checks to make.
The full text of the HMRC update is:
PAYE payment booklets
New PAYE payment booklets for the 2012/13 tax year have now been sent out to existing employers and new employers who registered on or before 16 December 2011. Please put the booklet somewhere safe until you need to use it from April 2012.
New employers who registered with us after 16 December 2011 will receive a 2011/12 payment booklet within three weeks of registering but their 2012/13 payment booklet will not be issued until the next despatch on 13 April 2012.
If you need a 2012/13 payment booklet and have not received one by 27 April 2012, phone the Payment Helpline on 0845 366 7816.
The request and despatch of a replacement booklet will take up to three weeks. If you need to make a payment before you have received your replacement booklet you should use an online facility to make payment. Please make sure that cleared funds reach us no later than 22 May 2012.
We recommend that payment is made online as this is the safest, quickest and most secure method. You can also tell us online that no payment is due; you do not need a payslip.
Further information is available about how to pay, or complete the online notification to let us know that no payment is due.
We charge late payment penalties if payment is not received in full and on time. The delay/absence of a payslip does not remove the responsibility to ensure your payment is made in full and on time.
If you do not want to wait for us to send you the payment booklet and you want to pay by cheque through the post, please send your payment (or notification of nothing to pay) together with a letter to:
This should include:
· company/employer name
· telephone number
· Accounts Office reference number
· the month, deduction year and amount being paid
Payment must reach us by 19 May 2012.
P11D(b) Return of Class 1A National Insurance Contributions – 2nd Interim Penalty for outstanding returns for 2010/11 tax year
From 12 March 2012 HMRC will start to send penalty notices where records show that you have not sent your 2010/11 form P11D(b) Annual Return of Class 1A National Insurance Contributions due. This return was due by 6 July 2011.
Reminders explaining the requirement to submit a P11D(b) were issued on 23 June 2011. These were accompanied by a P30B payslip.
The penalty will be £100 per 50 employees for each month your return is outstanding, from 7 November 2011 to 6 March 2012. So, an employer with 50 or less employees will receive a £400 penalty. This penalty is in addition to the penalty issued in November 2011.
If you have not sent your return, please send it without delay.
If you wish to appeal against the penalty notice, you must write to the office shown on the notice within 30 days stating why you think the penalty notice is wrong.
For further information and guidance is available covering
Completing form P11D(b) and
How to pay Class 1A National Insurance
Prevent illegal working
As an employer you have a duty to prevent illegal working by carrying out document checks on people to make sure they have the right to work in the UK, before you employ them.
If you do not carry out these checks and you are found employing an illegal worker, you could be fined £10,000 for each illegal worker or face up to two years in prison.
To avoid a fine there are three steps you must:
Ask for and take copies of original, acceptable documents showing the holder is allowed to work before you employ them
Satisfy yourself that the documents presented are genuine and that the person presenting them is both the rightful holder and allowed to do the type of work you are offering
If the person you go on to employ has a time limit on their stay - carry out repeat checks at least once every 12 months
UK Borders Agency has published detailed guidance and support on how to carry out the checks to prevent illegal working and avoid being fined.