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Daily Penalties - will they be reduced ?

Daily Penalties - will they be reduced ?

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We have just taken on a client in his 80's who has got himself in a mess. He recalls submitting 2013 return on paper before deadline of 31st October - he never noted date it was filed and obtained no proof of posting.

He then got a late filing penalty of £100 and submitted another paper return in March 2014 and was hit with daily penalties in excess of £500.

He has now engaged us to sort out his affairs and the tax return has to be amended because he has not claimed MCA.

If we do amendment online in next week or so will the daily penalties be reduced with reference to amended online filing date?

E.g. if we file amended return online on 16th May will daily penalties be reduced to 16 days at £10.


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11th May 2014 07:51

Good news and bad news

The bad news - If HMRC are acting as though a return was not filed then unless you can evidence the submission they are not going to cancel the penalties by virtue of you filing an amended return.

The good news - these daily penalties may not have been issued correctly by HMRC, so have a look at this and consider whether to appeal them: which includes suggested wording for an appeal in one of the comments.

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11th May 2014 14:57

I've appealed on behalf of two clients...

As tebthereb says - write an appeal letter quoting the relevant tax cases. HMRC have not appealed against Morgan v HMRC but they have against the Donaldson v HMRC decision.

The current position is detailed here....


.. this link also includes a standard template to use in your letter of appeal.

As I say - I have appealed (using the accountingweb suggested wording by the way) and received a letter from HMRC saying that they will not seek collection until the decision in the Donaldson v HMRC appeal is known. If HMRC wins they will charge interest.

One of my clients is a subbie and they have held onto the £900 in daily charges.

HMCR also sent a letter to client confirming receipt of the appeal so the client thinks I'm wonderful - that I am happy to have a 'go' at HMRC on his behalf!

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11th May 2014 17:06

Can't seem to... that link, but would be interested to read the content.

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11th May 2014 17:19

This better?

.. in error I think that I copied and pasted and a rogue full stop found itself in front of the link!

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11th May 2014 17:19




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