Late filing tax penalty

nick_mac

Hi all, just received a nice surprise from HMRC.

2 days ago I receive a 100pounds penalty for missing the deadline for filing my tax return for the year ending April 2018. I did not think I had to file one as I'm taxed directly by my employer, but apparently I did and I paid the fine on that same day. I also registered for self assessment that day so that I could then file my return and put my things in order.

Today I received another fine for a whopping 1,200pounds for the very same reason. Being the tax year ending April 2018, I am more than 6 months late and so I am now charged this additional amount as a penalty. Is there any way to get out of it? Im probably at fault here, but it was a honest mistake and very likely my tax bill will be zero (but I still had to file a tax return). Moreover, what's the point of sending both penalties 2 days apart? If I had received the first one sooner, I would have paid straight away and avoided any further delay and that crazy penalty.

Has anyone been in a similar position? Would my appeal stand a chance? I can't help but feel that it's not really fair to send both penalties so close - and it really defeats the point of penalties (i.e. Incentivizing people to pay!)

Any thoughts or advice welcome.
Thanks

Dazed_and_confused

First of there are lots of reasons why someone on PAYE may need to file returns.

Do you know why you are required to file a return for that year?

00ec25

appeal on what grounds: - ignorance? - failure to take note of stuff in the post? Neither are reasonable excuses
https://www.gov.uk/tax-appeals/reasonable-excuses

if you have been penalised for non submission then you would certainly have been given a notice to file 17/18 tax year a long time ago (May 18 typically).
You would not have been sent a snail mail reminder, although they do issue electronic reminders to those who have registered with them

the scale of penalties is widely published and easy to check using online calculators if > 3 months late
https://www.gov.uk/self-assessment-tax-returns/penalties

you have received the £1,200 one because you are way beyond being able to "get away with" the £300 one for "only" 3 months late

Keep_pedalling

You may be taxed by your employer, but what about the rental income you are receiving?

https://forums.moneysavingexpert.com/discussion/6031746/council-tax-and-airbnb

Dazed_and_confused

And which includes this post from the op

Do you need to do something specific to both register the FHL and claim the small business relief - or can you do it all through your end of year tax return?

nick_mac

Thanks for all your replies - although I really don't get the mockery and passive-aggressiveness.

My other post related to a property owned by my fiancee, so nothing to do with my tax return. So no, I'm not receiving any rental income and I "didn't get I deserve", but thanks so much. csgohan4 - next time maybe you could ask before jumping to your own conclusions!

Quite simply, I apparently had to file a tax return because my salary that year was above £100k. Given it was all from my employer, it was all already taxed and really a honest mistake. Info here (https://www.gov.uk/income-tax-rates/income-over-100000). So yes, as I stated in my 1st post I know I'm at fault, but very likely my tax bill will be zero anyway because my tax allowance the next year had already been adjusted. HMRC knows my income very well and already made the adjustment - not sure what additional benefit they get from me filing a tax return with the same exact information.

Finally, I called them this morning and they confirmed that they will cancel my penalties (except for the initial £100 - I totally deserved that). I guess because they failed to send that initial fine earlier (and I also did not get any notice, as 00ec25 suggested I should) and effectively give me a chance to put my things in order straight away and avoid the second larger fine.

TheCyclingProgrammer

If you didn’t get a notice to file a tax return then there should be no penalties for late filing.

There should also be no penalties for failure to notify if your liability is zero or already accounted for by a tax code adjustment.

If HMRC think a tax return was due then they must have sent you a notice to file a return. If you are certain they did not then I would appeal the £100 as well.

nick_mac

Thanks! I had already paid the £100 straight away, before receiving the 2nd fine. On the phone, they told me that I still need to file the tax return now (so I signed up and am waiting to get my Self Assessment code on the post) - and once that's done I can decide whether to appeal and try to get the £100 back.

I'll probably do that, for now I'm quite relieved about them cancelling the other fine!!

Dazed_and_confused

but very likely my tax bill will be zero anyway because my tax allowance the next year had already been adjusted

You may have misunderstood this. What exactly was the adjustment?

If it was just an adjustment to your Personal Allowance then it won't be relevant to the tax return i.e. you may still owe a few thousand.

If it is a different adjustment to your tax code then it could be relevant but you need to say what the adjustment is to be certain.

At the moment I would expect to have to pay something, depending on exactly what has happened quite possibly more than the penalties were.