New client, a recovering drug addict now a "responsible" sub-contractor. Estranged from his partner, warning correspondence from HMRC about 2012-3 SA return not received until too late, resulted in penalties for late filing. The 2012-3 SA return requested June 13th 2013. Eventually filed (not by us) April 24th 2014. Client says he was successful in appealing against the £100 late filing penalty only to be landed with daily penalties of c.£800!
The return had total employment income of c.£4,000 and £400 JSA. Income tax of c.£400.00 had been deducted. Tax due to be refunded £400.00 - HMRC sent notification. This means that client now owes HMRC £400.00!
My conversation with HMRC on his behalf today was unproductive.
Is an appeal pointless? Faceless bureaucrats - moral issues versus the law - what do others think?
Replies (4)
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Yes
I appealed two last year and got the penalties of £1300 apiece cancelled.
The penalties are so huge that it's always worth giving it a go.
Yes - appeal
Do a search here on appeals against the daily penalties of £800.
There is a Tribunal case wending its way through and if HMRC lose, These will be invalid anyway.
Disgrace
The daily penalties are a disgrace. And that applies whether HMRC win or lose.
If drivers could clock up 91 speeding tickets before the police mentioned it there'd be a much bigger public outcry.
Appeal
You have nothing to lose, get the client to write the letter (under your supervision obviously) explaining that the original penalty was overturned. I generally find that if the letter goes from the client not the agent you get a little further.
Make sure client explains full situation.