Self assessment late payment penalty

Self assessment late payment penalty

Didn't find your answer?

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?

Replies (3)

Please login or register to join the discussion.

By stratty
26th Apr 2012 18:17

Unlucky

I would be surprised if this appeal would be successful.  HMRC will always charge the 5% on unpaid tax as at the end of February.  

You could try with the sob story but it may just be a waste of your time.

Thanks (0)
By K81
27th Apr 2012 13:55

as stratty says appeal

as stratty says appeal unlikely to succeed.

 

The only surcharges that I have ever had luck cancelling are in cases where my client had arranged time to pay before 28 Feb and as the SA return was filed late also I think that you have no chance, sorry.

hope you can proove me wrong.

 

 

 

Thanks (0)
avatar
By GabbyH
27th Apr 2012 14:22

Thanks for your feedback.  I

Thanks for your feedback.  I think you are confirming what I already knew, but may just give it a go.  You never know!!

Thanks (0)