When do £10 daily penalties kick in?

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I'm aware that £10 daily penalties are incurred if a SA return is submitted 3 months late. A 2016/17 return will incur these if submitted on or ofter 1 May 2018.

However, I've just received a daily penalty for a client's 2016/17 return submitted 21 February 2018. 21 days at £10/d, £210. This is in addition to the £100 penalty. The daily penalty is a HMRC mistake, surely?

Assume notice to file issued in good time for the relevant year.

Replies (4)

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By SteveHa
25th Apr 2018 12:28

I would say yes, it's another HMRC [***] up. Probably automatic and issued by a malfunctioning IT system.

Thanks (1)
Red Leader
By Red Leader
25th Apr 2018 12:48

I've just realised what the answer is to my own query!

This was a paper return, therefore deadline 31.10.17 not 31.1.18. HOWEVER, online filing rejection due to known HMRC error resulted in paper return.

Will still require appeal, explaining the whole sorry mess and finally after a lot of wasted time by everybody, cancellation of the penalty ...

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PJ
By paulgrca.net
25th Apr 2018 12:53

Do remember to bill the client for the time spent on the appeal - which of course HMRC should pay.

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By JD
27th Apr 2018 10:59

We have had one of these arrive for a client, on the same day that we received a letter confirming acceptance of an appeal against a £100 late filing penalty for the same client, despite the Return having been filed sometime before the filing deadline.

It may be cheaper for HM Revenue and Customs to deal with appeals rather than look at what they are sending out in the first place, but will they accept such sloppiness from clients when it comes to the automated world of MTD.

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