Penalty Fine

PrincessLou

I registered as self employed under a tax amnesty program in September. Just to clarify, i wasn't avoiding registering/paying tax - i only earn a couple of thousand a year from self employment anyway - it was just pure worrying and part ignorance on my behalf.

Anyway, i got everything registered and back on track with HMRC in September, then a couple of weeks ago i received a £100 penalty fine letter because i was late registering for national insurance contributions.

The thing is, it's obvious i was going to be late, i'm 2 years too late, but i thought the whole point of the amnesty was to waive late registration fines and to give people a fresh start and to get them on the system.

I'm so confused. I had only earnt a couple of thousand per year for those two years anyway. Am i allowed to appeal this fine? If so, what do i need to include in my appeal letter?

Thanks for any advice!

agrinnall

If it was a tax amnesty then presumably NI was out of scope. In your case there wasn't any tax to pay anyway, but class 2 NI may have been due - although if your profits were under the threshold (currently £5595) you might not have to pay. I'm not sure whether not being liable for NI means you can appeal the fine, but it's probly worth a try.

http://www.hmrc.gov.uk/working/intro/class2.htm#5

HappyMJ

They can be appealed to...especially if you wouldn't of had a liability in the first place.

PrincessLou

Thanks for the replies. Does anyone know how to appeal? i.e. what i need to include in my letter? I've never had to do anything like this before.

Savvy_Sue

As part of your appeal, I'd ask for a Certificate of Exemption from paying NICs on your self employed income because it has been lower than the threshold and is likely to remain so for this tax year.

anselld

It is only the press that call it an amnesty, HMRC call it a campaign and as far as I know there is no obligation to waive penalties or fines under these schemes.