I have a new client a young lad working in the building trade who has basically his his head in the sand and not done his SATRs for the last 4 years. He said he did try a few times but couldn't deal with HMRC online tax returns and gave up but thought he might be okay because tax was being deducted via CIS and he knew his Contractors were making monthly CIS returns which reported his income to HMRC.
We have brought all his SATRs up to date with HMRC and they show significant refunds but these are sadly wiped out by the penalties.
Has anyone had any success appealing penalties in this type of situation?
I plan to use reference to the provision that HMRC can if they choose make "special reductions" on the basis that the penalties are hugely excessive in relation to his tax position (ie no tax to pay) and contrary to the compliance intention of the law and will throw CH170000 into the mix.
The person I spoke to at HMRC did say HMRC may consider waiving the penalties if there was no tax due but of course nothing in writing from him.
Just interested to hear in similar cases where there isn't really a reasonable excuse whether anyone has achieved any success?