HMRC system error affecting employer compliance submissions

It has emerged that HMRC are 6-8 weeks behind with P11D processing due to the pressure of resources being moved to COVID-19 operations. 

Unfortunately this has had the following impacts…

P11Ds

Some P11D warning letters have been issued to employers indicating the P11Ds and the P11D(b) have not been received when in fact they have, they have just not been acknowledged within HMRC’s systems. This applies to both postal and online submissions.

The processing delay will mean that any coding adjustments required for employees will be delayed and there will be fewer months left over which any underpayment of tax is to be collected.

CIS

We are also aware that some employers have received CIS penalty notices where submissions have been made correctly. 

Employment Allowance

We have also been alerted to a HMRC system error in respect to Employment Allowance where employers have received a letter from HMRC Debt Management indicating an underpayment for months 1-3 as the Employment Allowance has not been recorded correctly from the EPS by their systems. HMRC are working with their IT business partners and hope to have a resolution by 19th August, so hopefully things will resolve themselves next week.

If you have made your filings correctly these HMRC process issues should be automatically rectified in due course. If you have missed any of the filing deadlines then please get in touch with us and we can help you to bring everything up-to-date.

Contact us

For further advice, please contact Clair Williams at clair.williams@taitwalker.co.uk.