HMRC Display Leniency With Late Return Penalties

 In Fine, HMRC Investigation, penalty

Tax officials no longer check why someone was unable to submit self-assessment forms if they provide a “reasonable” excuse

HMRC have been automatically sending out £100 penalties to anybody who’s payment was late. Many appealed to the tribunal and many won those appeals.
Now HMRC is so overwhelmed with these appeals it’s just scrapped the whole thing. It shows that reform within HMRC is possible.

Up to 890,000 people who filed late tax returns have been given an amnesty over the £100 fine for missing the deadline, it can be disclosed.
Tax officials are no longer checking why someone was unable to submit their self-assessment forms on time, as long they provide a “reasonable” excuse.

In an internal memo leaked to The Daily Telegraph, staff at HM Revenue & Customs were asked to write off the £100 charge without further investigation if people with seemingly mitigating circumstances appealed after paying their tax bill.

The unusual action has been taken as HMRC faces a backlog of almost a million letters from taxpayers, the documents showed.

Over the past two weeks staff have been taken off call centre duties to work through the mail, rather than answer the telephones.

Read more here.

Recommended Posts

Leave a Comment