Self assessment late payment penalty
Has anyone had any success in appealing against a self assessment late payment penalty?
My client has just received a penalty for £400 which represents 5% of the tax that was outstanding for 2010/2011 as at 1 March 2012. The client was late in filing his tax return (filed 4th April 2012) and started making arrangements to try and settle his outstanding tax bill of £8k. He paid 25% of the tax straight away and tried to organise with HMRC a payment plan to settle the rest. HMRC have been very unhelpful regarding this which has led to my client to take out a bank loan at a much higher rate to settle the debt with HMRC asap.
The client understood that he would have a late filing penalty of £100 plus interest, but feels that the additional £400 is unfair and equates to an interest rate of approx 20%!!
My client was self employed for a year (2010/2011) and taxable income was £35k. He was the sole earner in his house at the time as his wife had maternity leave with their second child. My client had suffered £8k of bad debts with one of his customers and as a result returned to employment for most of 2011/2012. I know it is no excuse but as he was only self employed for just one year and suffered a substantial bad debt the money was not there to be paid. I feel that HMRC will not see this as a reason to not impose the penalty but I feel I should try for my client.
Has anyone got any advice on how to appeal against this?
- Scottish but not UK 167 4
- What is the role of an accountant? 35 1
- Pay-slip date & Pay-ment Date 41 2
- Construction Industry Scheme Age Limit 46 3
- Sole Trade - Losses B/Fwd 125 8
- VAT on introducer fees 62 1
- Company Accounts 371 7
- Statutory Maternity Pay (SMP) 271 17
- VAT Fuel Scale Charge for Fuel on Private/Personal Car 262 4
- P11D Query 85 3
- CIS 298 10
- VAT1 Form- Question 7 200 7
- Lexis Nexis 3 Month Cancellation Notice 219 5
- Any Scottish members out there? 10,051 358
- Complicated freehold purchase and CA 143 2
- Accountancy packages for FRS 102 199 5
- Tax relief on investmement in holding company 88 3
- FRS 102 and loans from a director 371 2
- Pension Contributions Relief 217 7
- Professional Indemnity Insurance 674 18
- Raiders of the Lost Tax File 1,217
- Chartered Accountant in County Down N.Ireland 425
- National Insurance 324
- IPP (International Pension Plan) income 318
- Unnecessary S9A Enquiries 248
- Non Resident 245
- Cass 5 FCA Client Money Software recomendation 239
- A question for the payroll-only bureau's out there 218
- Franchise income and costs 216
- Hands on experience of Digita 150