HM Revenue Late notification Penalty Charge - what should I do?

oliviaolivia12345

I have a £100 fine against me for not notifying HM Revenue & Customs about becoming self-emlpoyed in time whilst being a student (earning less than £3,500 a year).

They have rejected my appeal outright, despite claiming that I cannot afford the fine (which is 20% of my monthly earnings).

I am writing my second letter of appeal to send back now reiterating this and that I am facing bankruptcy in the next few months.

I just wondered what will happen if I really cannot pay it? Does anyone know if I can pay it in instalments rather than have to go to court or risk being charged interest?

Savvy_Sue

You might be able to offer to pay it in instalments, but I don't think that claiming you can't afford to pay it is very strong grounds for appeal, so I wouldn't rely on that ...

timbellina

oliviaolivia12345 wrote: »

I am writing my second letter of appeal to send back now reiterating this and that I am facing bankruptcy in the next few months.

I just wondered what will happen if I really cannot pay it? Does anyone know if I can pay it in instalments rather than have to go to court or risk being charged interest?

If you really can't pay it? They'll wait until you get a job on PAYE and apply interest etc, and have it deducted by statutory notice to your employer. Or they'll do the same to your benefits; albeit at a lesser weekly rate.

Not being able to pay isn't grounds for appeal - why didn't you notify them? Whatever the real reason was (assuming it wasn't "I thought I'd try it on and see if I got away with it"!) you'd have stood a better chance if you'd given them the real reason and asked them to be use their discretion. Probably too late for that now, though - your grounds for appeal should have gone in the first time.

I'd explain the real reason I was late, ask for time to pay if they won't or can't apply their discretion to quash the fine, spread it over 12 months if you have to, but don't waste time on fighting a lost cause.

Sorry not to be any help;

Tim