The Chartered Institute of Payroll Professionals ……………………………………………………………Policy News Journal
When processing a penalty appeal you will be prompted via a drop down menu for a reason for the appeal.
You reason might be factual, i.e. the penalty is not due because, for example: You filed on time
The filing expectation of HMRC was wrong You no longer trade or have any employees.
Alternatively it might fall into the category of reasonable excuse which means that yes, a penalty situation has technically arisen, but you have a reasonable excuse for the penalty to be discharged.
A reasonable excuse is normally something unexpected or outside your control that stopped you meeting a tax obligation, and HMRC list a variety of reasons on GOV.UK that have been accepted as being a reasonable excuse in past appeals, such as: your partner or another close relative died shortly before the tax return or payment deadline; you had an unexpected stay in hospital that prevented you from dealing with your tax affairs; you had a serious or life-threatening illness; your computer or software failed just before or while you were preparing your online return service issues with HM Revenue and Customs (HMRC) online services; a fire, flood or theft prevented you from completing your tax return; postal delays that you couldn’t have predicted Also helpfully listed are reasons that are highly unlikely (aka will not) to be accepted as a reasonable excuse: you relied on someone else to send your return and they didn’t your cheque bounced or payment failed because you didn’t have enough money you found the HMRC online system too difficult to use you didn’t get a reminder from HMRC Payroll software also includes a variety of reason codes that should be used to avoid the risk of a late reporting penalty being issued. If you are reporting a payment to an individual after the date it was paid, you may provide a reason why you have not been able to report on time. A reason should be supplied, where applicable, to each late reported payment within the FPS A – Notional payment: Payment to Expat by third party or overseas employer B – Notional payment: Employment related security C – Notional payment: Other D – Payment subject to Class 1 NICs but P11D/P9D for tax F – No requirement to maintain a Deductions Working Sheet or Impractical to report work done on the day G – Reasonable excuse H – Correction to earlier submission
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Treatment of income from sporting testimonials 9 August 2016
In response to consultation on the draft legislation for the treatment of income from sporting testimonials, the proposed exemption of £50,000 has been increased to £100,000
As previously announced , legislation will be introduced in Finance Bill 2016 to confirm that income from sporting testimonials and benefit matches for employed sportspersons, irrespective of whether they are arranged by the sportsperson’s club or by an independent testimonial committee, is chargeable to income tax under PAYE. Legislation is introduced in Finance Bill 2016 to amend Income Tax (Earnings and Pensions) Act 2003 (ITEPA) to clarify the law in this area and confirm that income arising from a non-contractual or non-customary sporting testimonial or benefit for an employed sportsperson is liable to income tax. Legislation will also be introduced before April 2017 to deal with certain consequential amendments for income tax and to set out the National Insurance contributions (NICs) position. The changes to ITEPA will also include the introduction from 6 April 2017 of a one-off exemption of £100,000 from Income Tax, and corresponding legislation will be introduced for NICs. This will apply to income from a non-contractual or non-customary testimonial being paid to or on behalf of an employed sportsperson. The exemption will apply to
The Chartered Institute of Payroll Professionals
Policy News Journal
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