Interest and late payment charges HMRC

Interest and late payment charges HMRC

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Just to flag HMRC late payment charges [interest and 5% penalty] can be incorrect.

My client had a 2011 PAYE underpayment brought forward; and this was to be charged in the 2012-13 SA100.   We got it wrong, and omitted the charge, so the HMRC revised the return in June 2014.  So far, so good.   The client's 2014 refund, filed in June 2014, was reduced from £3,000 down to about £1,400.

Then HMRC charged 1 year's interest up to 31 01 2015, at 3%, and then a late payment penalty too.  This is despite the tax having been discharged, before the due date of [30 days after the HMRC amendment under Schedule 56] payment.

I have written my protest letter but the HMRC penalty is only £90, so a grateful client, but a needless letter and an unnecessary tax demand for the 5% late payment penalty, apparently due next week!   Just to note Schedule 53 applies to the interest charge basic rules, under section 101 of Finance Act 2009.  

So Watch Out! There's a thief about!

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By geroge
06th Oct 2014 20:01

Thanks for the tip

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