HMRC daily penalties appeal

bitsnbytes

Due to various reasons, I've only just filed my tax return online (in July first week). But now have about £700 in daily penalties. I'm not due for any tax (it says £1.60 but I think that is an error on their part), is there any way I could successfully appeal against the daily penalties?

There is no way I could afford this penalty

agrinnall

If you can't afford the penalty that should have been your incentive to do the return either in the 9.5 months from online SA becoming available in April 2013 to the deadline at the end of January 2014, or failing that at some point in the 5.5 months since then to minimise the amount of the penalties. I don't know whether an appeal will be successful or not, but I expect you'll try a bit harder to get it done on time in future.

sinizterguy

Should have filed it in time then ....

You knew what the penalties were going to be and you still prioritised other things over that ... So, I hope those other things were worth the 700 pounds cost.

bitsnbytes

True, should have done it quicker and will be my focus coming years. But the question really is if I can do to appeal against this penalty, possibly reduce it if not get it down to 0.
Anyone had any successful appeals against HMRC in the past? If so could you please share letter templates etc?
As much as it my fault for being late, I find the penalties extremely ridiculous, far worse than what the banks charge and they do get grief about it

Dr_Teeth

What were the reasons you filed late? Your only hope is that you can argue you had a reasonable excuse for not filing on time.

Ballymackeonan

There used to be an exemption where late penalties were waived if there was no tax payable (or were limited to the amount of tax payable if it was under £100) but it was withdrawn a couple of years ago. So if you had a reasonable excuse, let them know.

madgagoo

The reasons HMRC will accept are not set in stone. In my experience only extraordinary circumstances would lead to a successful appeal. For example, you have been in hospital for the last 5 1/2 months or all your records were destroyed in a fire, on 29th January.

I couldn't do it as I had other priorities - e.g. running my business or looking after my children, are not reasonable excuses.

If you let us know the reasons for the late submission, then we would be able to offer an opinion on whether an appeal would be successful.

Otherwise, the penalties will stand and your best bet is to speak to HMRC and ask for time to pay. And then stick to the arrangement!

suso

bitsnbytes wrote: »

Due to various reasons, I've only just filed my tax return online (in July first week). But now have about £700 in daily penalties. I'm not due for any tax (it says £1.60 but I think that is an error on their part), is there any way I could successfully appeal against the daily penalties?

There is no way I could afford this penalty

No one can advise if any appeal would be successful as no one knows why its been submitted late - what are the "various reasons"

You also mention that you say you owe £1.60 - but you think it is an error on their part,

They don't come into it, the calculation is based upon whatever you have entered on the return.

If you have entered something wrong it is down to you, if you think you owe more tax, check the return, you are at danger of higher penalties for two reasons

Late payment penalties - if you do owe something, its going to be extremely hard to convince even the most generous inspector that you haven't avoided paying the tax on time by a) submitting the return late, b) not declaring something that you should have.

Check what you have declared.