PART 10
COMMUNICATIONS
CHAPTER 4MANDATORY USE OF ELECTRONIC COMMUNICATIONS
F10Mandatory use of electronic communication for delivering specified information205
An employer (as to which see regulation 206) must deliver a relevant annual return by an approved method of electronic communications to HMRC.
Mandatory use of electronic communication for delivering specified information205A
A specified employer (as to which see regulation 206) must deliver specified information by an approved method of electronic communications to HMRC.
General provisions relating to this Chapter205B
1
The Commissioners for Her Majesty’s Revenue and Customs may make a general or specific direction requiring an employer or a specified employer to deliver any relevant annual return or specified information by a particular approved method of electronic communications.
2
Any relevant annual return or specified information may be delivered by a person on behalf of an employer or a specified employer.
3
Regulations 205 and 205A do not apply to any relevant annual return or specified information which relates to payments of tax due under a retrospective tax provision for a closed year.
4
References in this Chapter to information and to the delivery of information must be construed in accordance with section 135(8) of the Finance Act 2002 (mandatory e-filing).
F14Employers and specified employersI2206
1
In this Chapter, “specified employer” means—
a
a large employer, or
b
a large or medium sized employer,
to whom an e-filing notice for a tax year has been issued by 31st December following the specified date for the tax year.
F62
The following are not specified employers and, for the purposes of this Chapter, shall not be regarded as employers—
a
an individual who is a practising member of a religious society or order whose beliefs are incompatible with the use of electronic communications;
b
a partnership, if all the partners fall within sub-paragraph (a);
c
a company, if all the directors and company secretary fall within sub-paragraph (a);
d
an employer who is authorised by HMRC to deduct tax from relevant payments made to employees in accordance with regulation 34 (simplified deduction scheme for personal employees) and who has not received an incentive payment; and
e
a care and support employer.
3
In paragraph (2)(c), “company” means a body corporate or unincorporated association but does not include a partnership.
F124
In paragraph (2)(e), “a care and support employer” means an individual (“the employer”) who employs a person to provide domestic or personal services at or from the employer’s home where—
a
the services are provided to the employer or a member of the employer’s family;
b
the recipient of the services has a physical or mental disability, or is elderly or infirm;
c
the employer has not received an incentive payment in respect of any of the last 3 tax years; and
d
it is the employer who delivers the relevant annual return (and not some other person on the employer’s behalf).
5
In this regulation an “incentive payment” means an incentive payment received under the Income Tax (Incentive Payments for Voluntary Electronic Communication of PAYE Returns) Regulations 2003.
F15Relevant annual return206A
1
In this Chapter “relevant annual return” means the return and accompanying information required by regulation 73 (annual return of relevant payments liable to deduction of tax (Forms P35 and P14)).
2
But relevant annual return does not include information supplied under special arrangements for the collection of tax made under regulation 141 (direct collection and special arrangements).
Specified informationI1207
F161
In this Chapter, “specified information” means—
a
Part 1 of Form P45;
b
Part 3 of Form P45;
c
Form P46;
d
Form P46(Pen);
F9e
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
But specified information does not include information supplied under special arrangements for the collection of tax made under regulation 141 (direct collection and special arrangements).
E-filing notice and appealsI3208
1
In this Chapter, “e-filing notice” means a notice issued by F11HMRC in respect of a tax year that an employer—
a
is a large or a large or medium sized employer, and
b
does not fall within regulation 206(2) F3...,
and accordingly is required to use an approved method of electronic communications for the delivery of specified information for the tax year.
2
An employer may appeal against an e-filing notice by notice to F11HMRC within 30 days of the issue of the e-filing notice.
3
The grounds of appeal are that the employer does not satisfy the description specified.
4
If an appeal is successful the e-filing notice must be withdrawn.
5
Regulation 217 (appeals: supplementary provisions) applies to appeals under this regulation.
Standards of accuracy and completenessF13209
1
Any relevant annual return or specified information delivered by a method of electronic communications must meet the standards of accuracy and completeness set by specific or general directions given by the Commissioners for Her Majesty’s Revenue and Customs.
2
Any relevant annual return or specified information which fails to meet those standards must be treated as not having been delivered.
C1F1F8Penalty for failing to deliver relevant annual returns and specified information210
F20A1
An employer who fails to deliver a relevant annual return or any part of it in accordance with regulation 205 is liable to a penalty.
1
A specified employer who fails to deliver specified information or any part of it in accordance with regulation F19205A is liable to a penalty.
F72
Where paragraph (A1) applies the penalty must be determined in accordance with regulation 210A.
3
The penalty must be determined in accordance with regulation 210B in all other cases.
4
Regulation 210C applies irrespective of how the penalty falls to be determined.
F17Penalty: relevant annual return for the tax year ending 5th April 2010210A
Table 9 sets out the penalty for the tax year ending 5th April 2010, depending on the number of employees for whom particulars should have been included with the relevant annual return.
1 Number of employees for whom particulars should have been included with the relevant annual return | 2 Penalty |
|---|---|
1-5 6-49 50-249 250-399 400-499 500-599 600-699 700-799 800-899 900-999 1000 or more | 0 £100 £600 £900 £1200 £1500 £1800 £2100 £2400 £2700 £3000 |
Penalty: relevant annual return for the tax year ending 5th April 2011 and subsequent years210AA
Table 9ZA sets out the penalty for the tax year ending 5th April 2011 and subsequent years, depending on the number of employees for whom particulars should have been included with the relevant annual return.
1 Number of employees for whom particulars should have been included with the relevant annual return | 2 Penalty |
|---|---|
1-5 6-49 50-249 250-399 400-499 500-599 600-699 700-799 800-899 900-999 1000 or more | £100 £300 £600 £900 £1200 £1500 £1800 £2100 £2400 £2700 £3000 |
Penalty: Form P45 (Part 1 or Part 3), P46 or P46(Pen)210B
1
This regulation applies for the tax quarter ending on 5th April 2010 and the tax year ending on 5th April 2011 (the “relevant period”).
2
Table 9A sets out the penalties for the relevant period depending on the number of items of specified information the employer has failed to deliver in each tax quarter falling within that period.
1. Number of items of specified information the employer has failed to deliver in the tax quarter | 2. Penalty |
|---|---|
1 – 5 | Nil |
6 – 49 | £100 |
50 – 149 | £300 |
150 – 299 | £600 |
300 – 399 | £900 |
400 - 499 | £1,200 |
500 – 599 | £1,500 |
600 - 699 | £1,800 |
700 – 799 | £2,100 |
800 – 899 | £2,400 |
900 – 999 | £2,700 |
1000 or more | £3,000 |
3
Each of the types of specified information mentioned in sub-paragraphs (a) to (d) of regulation 207(1) counts as a separate item of specified information for this purpose.
4
An item of specified information counts even if it relates to the same employee as one or more other items.
Appeals and interest210C
1
2
A notice of appeal against a determination under section 100 of TMA of a penalty can only be on the grounds that—
a
the employer is not a specified employer, subject to paragraph (3),
F18aa
the employer is not regarded as an employer the purposes of this Chapter
b
the employer did comply with regulation 205 F4or regulation 205A,
c
the amount of the penalty is incorrect, or
d
paragraph (1) applies.
3
An employer may not appeal on the grounds that the employer is not a specified employer if the employer has already appealed under regulation 208(2) (appeal against e-filing notice).
4
Section 103A of TMA (interest on penalties) applies to this penalty.