Tax return late payment fee rebate - do I need to submit a C4 form?

MangoKitty77

Hi all - I'm a bit stuck currently with my query. My MIL passed away last summer. We submitted tax returns for her for the year of and the year preceeding her death. One of these was submitted a few months late as they did not send us the necessary forms when they should have. Late payment fees were added. We wrote a letter to HMRC requesting that these be removed due to it being an error on their part. We submitted iht400 2 months later on time and also applied for probate once we got the code.

We have now received a letter from HMRC advising us that they have removed late payment fees from the tax returns we submitted and also late payment fees from ones she submitted while she was alive. The amount is not substantial ~£100.

Do we need to submit a C4 corrective account to HMRC regarding this? Probate has not been granted yet. TIA

poseidon1

HMRC does not have a formal de minimus amount below which they waive additional IHT assements.

However In your case rather than just lodge a C4 corrective in isolation for this late fees waiver, if you are certain there will be no further amendments to the IHT assessment, than I would suggest you also lodged IHT 30 IHT clearance certificate.

If HMRC wish to raise a small assessment prior to providing clearance they will do so, if not they will likely ignore the additional tax due and process your clearance.

However only adopt this approach if you are absolutely certain no other C4 corrective items will emerge out of the woodwork.