Penalty charge error

mancroft_2

I filled in the self-assessment questionnaire on the HMRC website and was told I don't need to put in a tax return.

I have now been sent a penalty charge notice. Is this normal?

BoGoF

The important part of that is "unless they asked you to send one" - which I'm guessing they did or you wouldn't have had a penalty.

mancroft_2

BoGoF said:

The important part of that is "unless they asked you to send one" - which I'm guessing they did or you wouldn't have had a penalty.

No they didn't and therein lies the problem.

BoGoF

mancroft_2 said:

BoGoF said:

The important part of that is "unless they asked you to send one" - which I'm guessing they did or you wouldn't have had a penalty.

No they didn't and therein lies the problem.

They can't charge a penalty without issuing a return or a notice to file which would have happened last April.

Does your personal tax account show a return or notice to file was sent?

mybestattempt

Did you make self assessment returns for tax years prior to this?

After completing the questionnaire did you actually ask to be taken out of self assessment for 2022/23 and if so did you receive a letter confirming no return was required for that year?

[Deleted User]

mancroft_2 said:

I filled in the self-assessment questionnaire on the HMRC website and was told I don't need to put in a tax return.

I have now been sent a penalty charge notice. Is this normal?

You mean that the wizard concluded that you do not need to complete a tax return. 

If you had been issued a notice to file you must file a tax return. 

sheramber

When did you do the questionnaire? 

 If it  was after a notice to file was issued in April 2023  then the issue of the notice to file takes priority, unless you contacted HMRC to get the notice to file cancelled and your self assessment record closed.

The questionnaire is not linked to your self assessment record so HMRC would have no knowledge it.

mancroft_2

I have not been issued a notice to file. I made a return last year. They said "You paid the right amount of Income Tax for 6 April 2021 to 5 April 2022".

mybestattempt

You haven't answered all the questions you been asked.

However, if you completed a 2021/22 self assessment return then, unless you were taken out of self assessment, HMRC would automatically issue a notice to file a 2022/23 return. 

It seems that HMRC did issue a notice to file a 2022/23 return and because you haven't done that by 31 January 2024 an automatic penalty late filing penalty has been issued as the return is now over 30 days late.

Unless you make a 2022/23 return there will be more penalties.

Check your self assessment record that will show if you were sent a notice to file a 2022/23 return, I'm confident it will and you should get it done.

The way to have this penalty cancelled is to successfully appeal on the grounds that you had a reasonable excuse for making a late return. Obviously, we don't have the full background here but from what you've said HMRC may uphold the penalty.

The penalty notice will explain how to appeal. 

Alternatively you may just want to complete the 2022/23 return and pay the late filing penalty.

I suggest after 6 April this year you check if you get a notice to file a 2023/24 return. If you do the questionnaire again and want to come out of self assessment you will need to tell HMRC.