Hi Everybody
If i have paid late submission penalties and i have tax refunds. Do i need to pay those penalties or HMRC will adjust those penalties with my refunds and then pay me back
Thanks in advance
Replies (2)
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Depends which year
From 10/11 the penalty was not affected by tax due / outstanding @ 31 Jan so you will always have at least £100 for late submission of personal returns.
Prior ro 10/11 for returns where a liability was due (so not partnership returns) HMRC should adjust the penalty down to nil if there was no tax o/s at the filing date
HMRC would prefer you to pay the penalties up front, however if you do have a refund any penalties not yet paid will be deducted from the refund.