HM Revenue and Customs has sent a small number interim penalty letters for the 2013 to 2014 tax year in error.
HMRC’s analysis shows employers who met their filing obligations for the tax year ending 5 April 2014 may have wrongly been sent penalty letters.
Among those who were wrongly sent a letter delivered a ‘month 12’ full payment summary with zero financial values, declaring final submission for the year or a ‘month 12’ employer payment summary (EPS) with zero financial values, whether or not declaring final submission for the year.
Month 12 means the end of the tax year.
Employers who handed a ‘month 12’ EPS claiming ‘construction industry scheme’ deductions suffered and an earlier year update with zero financial values were also among those who received an unwarranted penalty letter.
HMRC confirmed it is urgently updating the records of all employers affected and employers do not need to do anything.
A spokesman for the tax office said: “HMRC is sorry for any inconvenience and concern caused.”
HMRC’s latest error comes after last month FTAdviser revealed the tax office had been accused of scare tactics by an accountant.
Rather than check tax returns to see why the effective rate of tax is less than anticipated, Mike Down, who heads up the Baker Tilly tax risk and investigation management team, said HMRC seemed to have simply issued a string of blanket letters.
In each case, Mr Down, a former tax inspector, said a quick check of the tax return would have shown HMRC why the effective rate was lower than the general percentage (whatever that is) which HMRC expected it to be.
However when asked to comment on Mr Down’s accusation of ‘bully-boy tactics’, a HMRC spokesman said the tax office was only issuing 1,000 letters in total and: “We are committed to making it easy for our customers to get their tax right.
“We are issuing letters as part of a trial to help individuals identify any mistakes they may have made on their self assessment return.”
