HMRC have advised that they are starting to send penalty notices where their records show that 2006-07 Employers Annual Return (P14 and P35) and, where due, a 2006-07 Contractor's Annual Return (CIS36) have not been submitted.

These returns were due by 19 May 2007. The penalty will be £100 per 50 employees and/or subcontractors for each month your Return is outstanding, from 20 January 2008 to 19 May 2008.