Daily Penalties - is it worth an Appeal?

Daily Penalties - is it worth an Appeal?

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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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RLI
By lionofludesch
03rd Jun 2014 10:19

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.

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Me!
By nigelburge
03rd Jun 2014 10:23

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.

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RLI
By lionofludesch
03rd Jun 2014 10:32

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.

 

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By rjoconnor81
03rd Jun 2014 11:03

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.

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