RA and JC Atkinson Ltd (t/a Minster Cleaning Services) v Revenue & Customs

Penalties for late payment of PAYE and NIC � Schedule 56 Finance Act 2009 - eleven late payments � penalties levied at 4% where more than ten late payment failures �Appellant unaware of progressive nature of penalty regime and disputed number of late payments

Having orally given my Decision at the conclusion of the hearing to partly allow this appeal, the following are full written findings of fact and reasons for the Decision.

R A and J C Atkinson Limited t/a Minster Cleaning Services (the Appellant) appeal penalties totalling �3,040.56 charged by HMRC under Schedule 56 Finance Act 2009 for the late payment of PAYE and National Insurance Contributions during the tax year 2010-11.

HMRC say that the PAYE and NIC for each of the 12 months in 2010-11 were not paid on time. The relevant Regulations provide that an employer is liable to a penalty of an amount determined by reference to the number of defaults made during the tax year. Under the Regulations the first default during the tax year does not count as a default and therefore does not incur a penalty. In this case, HMRC say that there were 11 other late payment failures and that accordingly under the Regulations a penalty of 4% was charged on the total amount of the default.

The evidence before the Tribunal included the Appellant�s notice of appeal to the Tribunal; copy HMRC recorded transcripts of telephone and other communications between HMRC and the Appellant during the tax year; a copy of relevant extracts from HMRC Employer Bulletin relating to the introduction of late payment penalties and oral evidence by Mr Roy Atkinson.