P11D(B) penalty warning letters

Sep 07, 2020

HMRC has issued the following message in response to P11D(b) penalty 2019/20 warning letters which may have issued in error despite the forms having been submitted on time.

Employers are advised to pay roll benefits or submit P11D(b) & P11D online which are quick and easy methods to avoid delays rather than make paper submissions.  The COVID pandemic has impacted both Employers and HMRC, therefore we have introduced new ways of capturing the paper Forms P11D(b) & P11D. The issue of the Penalty warning letters (PWL) is always given careful consideration and undergoes analysis and where possible all P11D(b)’s are processed ahead of the warning letter issue, these activities were undertaken this year and I am pleased to say we did not see the anticipated substantial increase in the number of letters being issued.

Having said this as with any year there are some cases that get missed for a variety of reasons some being that a cheque has been included with the Form which is processed first by Debt Management colleagues before being passed on or an incorrect postal address used. Please advise your members if they have already sent us the forms they do not need to do anything else and be assured we will carry out the same assurance activities ahead of any penalty selection but if a penalty is received they can appeal.  I can also confirm Operational colleagues have not reported a spike in calls relating to the PWL.

The capture of Employees P11D’s is ongoing and will be completed by mid-September.”