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Withdrawing a notice to file a tax return: consultation

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HMRC is consulting on a proposed statutory power allowing the department to withdraw a notice to file a self assessment tax return and to cancel any penalty for failure to make such a return.

HMRC is consulting on a proposed statutory power allowing the department to withdraw a notice to file a self assessment tax return and to cancel any penalty for failure to make such a return.

Since February 2012 HMRC has invited people who have received a notice to file, but think they should not be in SA, to contact the department.

‘Extremely high’ levels of calls from taxpayers querying the need to complete a return contributed to a ‘slippage’ in contact centre service last month, HMRC said. The department removed 130,000 people from SA but sent penalty notices to almost 12,000 of them in error.

Recent changes to the penalty regime have enabled HMRC to use its discretion to withdraw the notice to file a return and cancel any related penalty. The consultation document Withdrawing a notice to file a Self Assessment return considers ‘putting this approach on a statutory footing for the longer term’.

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