hmrc late penalty 1200

phillipa141288

I trust this is the correct category? any help from experts on here will be very much appreciated - here is what happened - any suggestions to make it stronger better. Many thanks.

Hello

You will see from your records that I completed past self assessment returns in a timely manner. The returns were always straightforward and used to claim back tax deducted by my pension provider.

However, in 2019 2020 I received compensation of £1321 from Barclays and they deducted income tax of £264 (see attached statement of deduction of tax).

I accessed my HMRC account to complete this return well before any deadline as I have always done. But, I could not find anywhere to put the £264 which I wanted repaid as overpaid tax.

After spending a lot of time searching for where to place this amount, I contacted HMRC to ask for help. I was advised that I did not need to complete a self assessment return but needed to complete form R40.

I completed this and received letters from HMRC stating that this claim form could not be accepted because I pay tax under the self assessment tax system; if you still wish to make a claim you will need to change details to the tax return. I made the appropriate changes to the return after receiving the form showing where to put the £1321 and £264.

I trust that this explains why my self assessment return was not completed in a timely manner as I usually do and that the penalties will be removed and my over paid tax will be forwarded to my bank account as in previous years (I enclose copies of correspondence sent and received).

Also, I have never received any notification of any penalties being imposed. Obviously, if I had received a notice, I would have taken the appropriate action to make HMRC aware that I had been advised to complete form R40 and not a self assessment return.

I look forward to hearing from you in due course and thank you in anticipation of your help with this.

Yours sincerely.

Jeremy535897

The figure of £1,321 is presumably interest on compensation, rather than compensation. It appears that you complete a self assessment tax return annually. Until you cancel this, the requirement continues. The HMRC adviser presumably assumed you were not someone who filed a self assessment tax return, hence the advice to complete a R40.

It sounds as if you submitted a tax return without the £1,321 on, and then amended it. If the original return was filed on time, what penalties were incurred? If you didn't file on time, why not?

You need to refer to the penalty notice you have received (date, tax year, amount, your UTR/NINO, why it has been issued, any reference on it).

sheramber

 When did you submit your self assessment form.

You say you completed a form R40 because you were told to do that, not a self assessment  return.

But then you say you changed the details on the self  assessment return.

When dod you submit the self assessment return and when do you change the details?

Dazed_and_C0nfused

I accessed my HMRC account to complete this return well before any deadline as I have always done. But, I could not find anywhere to put the £264 which I wanted repaid as overpaid tax.

That isn't a reason not to complete the return though, you could have completed it without that particular income and amended it at a later date.  Especially as you were clearly convinced that the result would a refund due to you, not extra tax owed to HMRC.

After spending a lot of time searching for where to place this amount, I contacted HMRC to ask for help. I was advised that I did not need to complete a self assessment return but needed to complete form R40.

That is very poor on HMRC's part.  The first thing they could/should have done before mentioning an R40 is check if a Self Assessment return (or notice to file) had been issued.  You can do one or the other but not an R40 and Self Assessment return for the same tax year.

I completed this and received letters from HMRC stating that this claim form could not be accepted because I pay tax under the self assessment tax system; if you still wish to make a claim you will need to change details to the tax return. I made the appropriate changes to the return after receiving the form showing where to put the £1321 and £264.

I presume you mean you completed the R40.  If so when was the Self Assessment return completed and sent to HMRC?

Overall I think you do have a chance of appealing against some of the penalties, especially if you haven't had late filing penalties before, but I don't think it is a clear cut case where HMRC would just accept your appeal.  You may need to go to tribunal to state your case if HMRC don't agree.