HMRC holds to the right to penalize any individual if in a violation of legality. Most common penalties which are charged by HMRC are pertaining to late filing, late tax payment, wrong declaration of the taxable incomes and failing to keep advocate record to support tax return
REASONABLE CIRCUMSTANCE
Penalty or fines imposed by HMRC can be cancelled or amended if the filer has presented a reasonable excuse which explains the reason for this violation. HRMC though is a regulatory authority, but it keeps an open end towards their files that they can appeal against the decision of HMRC because HMRC can base their earlier decision on misjudgment as well.
PROCEDURE
If HMRC sends their penalty letter by post, an individual can use the form provided along with it to file an appeal against this decision. As far as self-assessment is concerned, the file needs to use another document to file their appeal to HMRC.
While appealing for self-assessment delayed filing penalty, this is the option is available in the online portal of government gateway. If the individual does not have a government gateway account, first registration for this account is required. Following are the items required to properly file an appeal against the penalty.
Date penalty was issued
Date on which self-assessment tax return by FBS Chartered Accountants was filed
The detailed answer i.e. reasonable excuse for the delayed filing to HMRC.
If an individual is not interested in launching their appeal online, the second option is to post a form SA370 or by letter. Penalized file can send his letter or FormSA370 to HMRC’s self-assessment queries center for evaluation.
PAYE PENALTY
PAYE taxation is the individual who is employed by a certain organization and their organization pays their taxes on their behalf. This penalty appeal can be launched through PAYE for employer’s portal. Once the appeal is submitted, immediately acknowledge of this appeal is received by the individual.
NO APPEAL FORM
Sometimes for the instance when the individual is not in the access of the internet to get a certain form for their penalty appeal. HMRC has provided ease by allowing the individual to file their appeal against penalty through a letter signed by him. Letter must include the following information
Full name, as mentioned in the tax profile of HMRC
Unique reference number provided by post at the time of HMRC registration. For self-assessment filing self-assessment unique reference number is mentioned so that confusion for HMRC regarding people with the same name can be avoided.
A thorough explanation of how and why return filing was delayed with reasonable excuses along with proper dates for the reviewer to understand the scenario.
If there was a system error which resulted in delayed filing or tax payment, please mention the date individual tried to submit a return or pay tax and system generated an error which appeared on the system in return.
DEADLINES
HMRC has been very strict when it comes to date and deadlines, as it keeps the entire taxing community in check and responsible regarding their tax responsibilities. Penalized individual is required to appeal against the charged penalty within the 30 days of the penalty notice. If an individual fails to file an appeal in 30 days then the fate of the appeal lies with HMRC. HMRC will look into the information provided. Further, decide whether this appeal which is received after the deadline will be considered or not.
DISAGREEMENT WITH HMRC
HMRC as giving a fair opinion doesn’t always align with the decision individual had in mind. The individual is entitled to file review against this appeal to HMRC by some other tax official. The second option available for the individual tax filer is to launch an appeal in tax tribunal.
DELAYED PENALTY PAYMENT
Often if the individual tax filer delays their tax penalty which was previously charged by HMRC. Further penalties are imposed the penalized amount and any other taxable amount which was due previously. If the matter is still in consideration either with HMRC official or in the tribunal, HMRC allows payment to be delayed. This is only possible if the taxpayer has received the penalty notice and has launched an appeal. If the appeal is not filed on a timely basis, the individual would be prone to further penalties. This proneness stays until the tax and penalty payable is cleared.
In short, as compared to the online filing appealing of other countries, HMRC has kept it as simple as possible. This simplicity has enabled the taxpayers to be at ease when it comes to appealing against HMRC.
For more information about on Self-Assessment or Personal Tax get in contact today call:0204 526 5195 or drop us a line hello@finchleybusiness.co.uk
