HMRC have published new guidance on when and how to appeal against penalties for late filing of self-assessment tax returns or late payment of tax. This is basic guidance aimed at individual taxpayers, but nevertheless makes a number of important points which are worth keeping in mind, for example:
where a taxpayer decides to appeal, they should consider paying the penalty. Where the appeal is rejected, interest will run from the date it was due until the date it is paid so paying the penalty upfront avoids this risk (although presents an obvious cashflow challenge, particularly where the taxpayer considers no penalty is due and hence is appealing) - this is of course, HMRC’s view of the position;
HMRC maintain an online tool which taxpayers can use to check their right to appeal and the timelines for doing so; and
the guidance also links through to HMRC’s ‘disagree with a tax decision’ page which highlights HMRC statutory reviews, routes to the tax tribunal and potential for alternative dispute resolution.
HMRC have published new guidance on when and how to appeal against penalties for late filing of self-assessment tax returns or late payment of tax. This is basic guidance aimed at individual taxpayers, but nevertheless makes a number of important points which are worth keeping in mind, for example:
where a taxpayer decides to appeal, they should consider paying the penalty. Where the appeal is rejected, interest will run from the date it was due until the date it is paid so paying the penalty upfront avoids this risk (although presents an obvious cashflow challenge, particularly where the taxpayer considers no penalty is due and hence is appealing) - this is of course, HMRC’s view of the position;
HMRC maintain an online tool which taxpayers can use to check their right to appeal and the timelines for doing so; and
the guidance also links through to HMRC’s ‘disagree with a tax decision’ page which highlights HMRC statutory reviews, routes to the tax tribunal and potential for alternative dispute resolution.
