Share this content

Sect 102 TMA 1970

A client who has been late with tax return submissions and operates under CIS, involves the repayment of tax.

Lateness of returns has lost any repayments over 4 years old (approx £1800) and late returns have suffered penalties.

My question is by accepting the penalties (which have been correctly applied) can I use the above sect of the act to ask HMRC to mitigate. Criterea appears to be financial hardship and disproportionality of penalties. Given he's a net recipient of tax the penalties are disproportionate and his recorded income over the last 4 years is approx £7.5k per annum - that appears to be low level of earnings.

If this can be done what is the approach


Please login or register to join the discussion.

S98 or S55 penalties?

HMRC should automatically consider mitigation of penalties.

See here:-

Basically, S98A penalties are mitigated to S55 penalties, which generally speaking will make them less.


Thanks (0)