Self Assessment Interest Reimbursement

MrsBSaver

Does anyone know how to claim an interest charge back on an unwarranted SA penalty charge? Basically, HMRC advised us to pay a penalty charge that was generated due to a HMRC back log. Whilst they reimbursed us the penalty charge( that shouldn't have been charged in the first place) they did not give back the interest they charged. I have called HMRC twice, been told the would send me a form.. have NEVER received any forms! Also, not to mention the amount of money I have paid to post unnecessary paper to them! I don't know how they get away from effectively stealing from honest citizens! 

Dazed_and_C0nfused

MrsBSaver said:

Does anyone know how to claim an interest charge back on an unwarranted SA penalty charge? Basically, HMRC advised us to pay a penalty charge that was generated due to a HMRC back log. Whilst they reimbursed us the penalty charge( that shouldn't have been charged in the first place) they did not give back the interest they charged. I have called HMRC twice, been told the would send me a form.. have NEVER received any forms! Also, not to mention the amount of money I have paid to post unnecessary paper to them! I don't know how they get away from effectively stealing from honest citizens! 

Did you pay the interest charge?

MrsBSaver

Yes as we were told to pay it to avoid it accruing further and we would get the money back 

TheSpectator

If they cancelled the penalty then any interest charge attached to the penalty would be reduced to nil so if you had paid it there should be a credit somewhere on your account for it. How much was the interest element? Could the resultant credit be set against any other amounts due?

MrsBSaver

Yes, the interest charge should be nil but we just received a statement from HMRC stating that the interest charge is outstanding even though we have paid it. The charge was £50 which may not seem like a lot but it's still money that belongs to us 

TheSpectator

MrsBSaver said:

Yes, the interest charge should be nil but we just received a statement from HMRC stating that the interest charge is outstanding even though we have paid it. The charge was £50 which may not seem like a lot but it's still money that belongs to us 

Can you post a redacted image. As I said, if the penalty was cancelled (what type of penalty was it?) then any interest shod automatically reduce to nil.

MrsBSaver

The fee breakdown was as follows:
Penalty fee £182 
Interest charged £49.46
We paid them by debit card £231.46 (total of the above)
After filing in a form and providing back up HMRC agreed and sent us a cheque only for £182 NOT £231.46
So effectively they have kept the £49.46 and according to our new statement they haven't even applied it to the new amount owed

TheSpectator

MrsBSaver said:

The fee breakdown was as follows:
Penalty fee £182 
Interest charged £49.46
We paid them by debit card £231.46 (total of the above)
After filing in a form and providing back up HMRC agreed and sent us a cheque only for £182 NOT £231.46
So effectively they have kept the £49.46 and according to our new statement they haven't even applied it to the new amount owed

It's unlikely the interest on £182 would be £49.46. Was the penalty a late payment surcharge of 5% of the tax unpaid? I suspect the interest relates to a late tax payment rather than the penalty.

sheramber

I agree with Spectator. I think the interest was due on late payment of the tax due.

This is separate to the penalty. 

interest is charged on any tax paid after the due date for the year.  It is your responsibility to pay any tax  payable by the due date whether you have received a bill or not. 

You can appeal the late payment interest charge,  within 30 days of it being charged, in writing giving the reason why you were not able to pay  it on time

HMRC will decide if you have a reasonable excuse.