HMRC is currently sending out tax calculations to some taxpayers using the P800 form. The form shows HMRC’s tax calculations in respect of the tax year ending 5 April 2011. This form is sent to taxpayers after HMRC have received details of the salary, pension and tax paid for each individual from employers and pension providers. HMRC use this information to see if the correct amount of tax has been paid.
Nanny Tax Payment
In most cases, taxpayers that pay tax through the PAYE system will have paid the correct amount of tax. However, if too much or too little tax has been paid taxpayers will be sent a P800 form. HMRC are currently sending out P800 forms to taxpayers due a refund for the last tax year i.e. those who have paid too much tax and HMRC will automatically send a cheque within 14 working days of the date on the P800 Tax Calculation.
HMRC will send P800 forms later in the year to taxpayers that have paid too little tax. HMRC will usually collect any underpayment of less than £3,000 in 12 monthly instalments beginning in April 2012. Taxpayers who receive a P800 form should ensure that the figures quoted are correct.
Taxing Nannies PAYE service would be happy to assist with employers whose nannies receive underpayment notices and who are concerned that they may not be correct.
A recent tribunal hearing considered an appeal by a taxpayer who had sold his business back in July 2008. Upon the sale of his business the taxpayer paid his employees and issued them with P45 forms. As the business had ceased on 28 July 2008 an employer’s annual return should have been submitted to HMRC by 19 May 2009. The taxpayer was not aware of this fact and did not make any such return. In May 2010, almost two years after his business ceased HMRC issued a fixed penalty notice of £800 to the taxpayer for the failure to file an annual return.
The taxpayer appealed the penalty charge arguing that he had a reasonable excuse for the non-submission. The taxpayer explained to the tribunal that he had spoken to HMRC to inform them that he was no longer going to be in business and requested HMRC’s advice as to what actions he needed to take. The taxpayer was advised to write to HMRC, which he did, but was not informed of a requirement to file an annual return. HMRC were unable to prove to the tribunal that the filing notice had been sent to the taxpayer’s new address.
As has been frequently mentioned in recent tribunal cases, a reasonable excuse may involve an exceptional event but need not necessarily do so. The tribunal accepted that the taxpayer had a reasonable excuse that ‘was primarily caused by the appellant being given either misleading or incomplete information which led him reasonably to believe that he had done all that he was required to do upon closing or selling his business’. The taxpayer’s appeal was allowed.
Taxing Nannies have a good record of dealing with appeals. If you as an employer have received a penalty notice and are not sure whether it is due, Taxing Nannies will be pleased to assist you with any appeal required. Taxing Nannies would also be happy to assist with employers whose nannies receive underpayment notices and who are concerned that they may not be correct.