The Dentist, the Revenue and the P35

Feb 7, 2014


By Lyndsey Hall

Recently, another story came to light that further proves HMRC can’t be trusted to give reliable advice. A Dentist has lost his appeal against HMRC at First Tier Tribunal, after being charged £500 for the late submission of a P35 for the 2010/11 period.

Mr Heslop retired from his dental practice in September 2010, and having settled his PAYE liabilities, phoned HMRC to make sure nothing else was required of him. He was told that he had provided everything they needed and nothing more was required. In September 2011, he was informed that he must file a P35 for the 2010/11 period, which he did, and was duly charged a £500 penalty for late submission. In the circumstances, he believed he stood a good chance if he appealed against the penalty as he had a reasonable excuse: he had been reliably informed by HMRC that he had done all that was required of him. However, the Tribunal disagreed as he hadn’t specifically enquired about a P35 and, in their opinion, he should have known that he was expected to file one.

Unfortunately for Mr Heslop, he was forced to pay the £500 penalty, as HMRC would not accept responsibility for misinforming him regarding his requirements. If he had taken professional advice it would have been much cheaper for him and he would have known exactly what documents he was expected to file on his retirement.

Let us know your thoughts on this ruling in the Comments.



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