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Sect 102 TMA 1970

Sect 102 TMA 1970

A client who has been late with tax return submissions and operates under CIS, involves the repayment of tax.

Lateness of returns has lost any repayments over 4 years old (approx £1800) and late returns have suffered penalties.

My question is by accepting the penalties (which have been correctly applied) can I use the above sect of the act to ask HMRC to mitigate. Criterea appears to be financial hardship and disproportionality of penalties. Given he's a net recipient of tax the penalties are disproportionate and his recorded income over the last 4 years is approx £7.5k per annum - that appears to be low level of earnings.

If this can be done what is the approach


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25th Aug 2014 12:19

S98 or S55 penalties?

HMRC should automatically consider mitigation of penalties.

See here:-

Basically, S98A penalties are mitigated to S55 penalties, which generally speaking will make them less.


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