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Penalty appeal

Penalty appeal

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Our practice made a mistake last year when filing the P35's - our payroll staff marked a Client's P35 as having been filed when it hadn't been.

We were unaware of the problem until the Revenue issued a penalty notice in Nov '10 for £700.00. We appealed on the grounds that this was unreasonable - the appeal was rejected and we then asked for a review which upheld the decision.

Is it worth going to tribunal ?? We have so little faith in the system that we can see that it will just get thrown out on the grounds that we are technically in the wrong.

But we feel very strongly that this is nothing short of leglised theft. Any ideas ?? 

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By stephenkendrew
11th Aug 2011 12:29


Have a look at this case: - 

and in particular, paragraph 25 of the decision states.."I conclude that in the direct tax context reliance on a third party can be a reasonable excuse."


So, first of all demonstrate that the client relied on you to deal with their payroll return.

Then show the tribunal how unfair the penalty system is.

Have a look at this article on AWeb :- 


Also, not listed in that article is this case, where the Judge is rather scathing of HMRC's tactic of waiting several months before a penalty is issued:- 






Thanks (1)
Replying to ringi:
By mikehurst
12th Aug 2011 10:08

Penatly appeal

Many thanks for your reply and the valuable information

Mike Hurst

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By yorky1000
11th Aug 2011 12:32


Search for the link  - "P35 penalties - result" which I posted a couple of weeks back. Sorry I cant do this techno stuff.

Basically tribunal reduced penalty to £100.

Thanks (1)
Tony Margaritelli, ICPA Chairman
By Tony Margaritelli
11th Aug 2011 14:35


If you checkout our page on facebook look for "Independent Certified Practising Accountants" you will note the reference to the case TC0126.

It mirrors your case almost exactly and at last the tribunal has "Stood up and been counted" on these most malicious of fines.


Tony Margaritelli - Chair ICPA



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