penalty interest charged on 9p under payment of £70.88

farmernt

not sure which area i should post this request for information so sorry if this is wrong.

i act a power or attorney for my blind father and in paying his tax i missed read the bill and sent 9p less than i should on the 31 jan  24, 

example  i read £1200.09 as £1200.00. 

when the letter came for this year i paid what was due on the 31st of jan 25. just had a statement of account saying that he owes £70.88 interest.

rang HMRC and the chap said that`s mad and i should appeal.

just spend a hour trying to find a way of doing this on the HMRC website but getting nowhere. 

help please as the only thing i can find just says you have 30 day but cant see form to down load or where to send letter or ??????????

Dazed_and_C0nfused

farmernt said:

not sure which area i should post this request for information so sorry if this is wrong.

i act a power or attorney for my blind father and in paying his tax i missed read the bill and sent 9p less than i should on the 31 jan  24, 

example  i read £1200.09 as £1200.00. 

when the letter came for this year i paid what was due on the 31st of jan 25. just had a statement of account saying that he owes £70.88 interest.

rang HMRC and the chap said that`s mad and i should appeal.

just spend a hour trying to find a way of doing this on the HMRC website but getting nowhere. 

help please as the only thing i can find just says you have 30 day but cant see form to down load or where to send letter or ??????????

You would never be charged £70 interest for paying 9 pence slightly late.

You need to look at his Self Assessment account to what charge the interest relates to and then back here with more info.

Don't waste your time (or HMRC's) until you know the real reason for the interest.

TheSpectator

What's the odds Payments on Account are involved in some way.....

[Deleted User]

TheSpectator said:

What's the odds Payments on Account are involved in some way.....

Have to agree. Perhaps the op can confirm whether payments on account were due (or reduced) in January and July 2024.

On the 9p - I have a balance on my account of £2.21 - since January 2020. No interest has ever been added. 

Jeremy535897

[Deleted User] said:

TheSpectator said:

What's the odds Payments on Account are involved in some way.....

Have to agree. Perhaps the op can confirm whether payments on account were due (or reduced) in January and July 2024.

On the 9p - I have a balance on my account of £2.21 - since January 2020. No interest has ever been added. 

https://www.gov.uk/hmrc-internal-manuals/debt-management-and-banking/dmbm401080 explains why.

[Deleted User]

Jeremy535897 said:

[Deleted User] said:

TheSpectator said:

What's the odds Payments on Account are involved in some way.....

Have to agree. Perhaps the op can confirm whether payments on account were due (or reduced) in January and July 2024.

On the 9p - I have a balance on my account of £2.21 - since January 2020. No interest has ever been added. 

https://www.gov.uk/hmrc-internal-manuals/debt-management-and-banking/dmbm401080 explains why.

Yes - I knew there was a de minimis limit. Just emphasising that interest on the 9p was unlikely. 

Dazed_and_C0nfused

Jeremy535897 said:

[Deleted User] said:

TheSpectator said:

What's the odds Payments on Account are involved in some way.....

Have to agree. Perhaps the op can confirm whether payments on account were due (or reduced) in January and July 2024.

On the 9p - I have a balance on my account of £2.21 - since January 2020. No interest has ever been added. 

https://www.gov.uk/hmrc-internal-manuals/debt-management-and-banking/dmbm401080 explains why.

I'm reading that differently, smaller amounts of interest can be charged.  But just won't be pursued as a stand alone amount.

I'm sure under Self Assessment i.e. post 1993, interest charges for smallish amounts have been added to Self Assessment statements of account.

But obviously not £70.88 for a 9p late payment!

[Deleted User]

Dazed_and_C0nfused said:

Jeremy535897 said:

[Deleted User] said:

TheSpectator said:

What's the odds Payments on Account are involved in some way.....

Have to agree. Perhaps the op can confirm whether payments on account were due (or reduced) in January and July 2024.

On the 9p - I have a balance on my account of £2.21 - since January 2020. No interest has ever been added. 

https://www.gov.uk/hmrc-internal-manuals/debt-management-and-banking/dmbm401080 explains why.

I'm reading that differently, smaller amounts of interest can be charged.  But just won't be pursued as a stand alone amount.

I'm sure under Self Assessment i.e. post 1993, interest charges for smallish amounts have been added to Self Assessment statements of account.

But obviously not £70.88 for a 9p late payment!

Indeed! I made a mistake - it’s £2.20. I ‘may’ be charged interest!