CashNews.co
Britons are being encouraged to contest any fines issued by HM Revenue and Customs (HMRC), following revelations that 73% of such penalties were overturned upon review.
Automatic fines, which are monetary penalties imposed by HMRC for missed filing or payment deadlines, can also be issued to individuals not required to pay tax.
A report in The Times revealed that of the 3,807 automatic fines challenged in the second quarter of this year, 2,755 were cancelled and 24 were reduced, resulting in a 73% success rate overall.
If you’ve been hit with a fine, you’ll receive a penalty notice from HMRC informing you of your late tax return or self-assessment tax bill payment. The standard fine for a late penalty is currently £100 for tax returns up to three months overdue.
However, this can escalate if the three-month period is exceeded or if the tax bill is paid late. If you believe you have a legitimate reason for missing a deadline or think you’ve been sent a bill erroneously, you can lodge an appeal with HMRC.
Appeals must be made within 30 days of the date the notice was issued. You can file an appeal either through your government gateway account or by completing and posting a form.
HMRC’s official guidance suggests that even if you plan to appeal a fine, it’s best to pay the penalty promptly. This is due to the fact that late payments can accrue interest and if your appeal is unsuccessful, you’ll be liable for both the fine and any accumulated interest.
Once HMRC receives your appeal, they will conduct a review which could take up to 45 days. If your appeal is successful, any money you’ve paid as a result of the disputed fine will be refunded.
If you’re dissatisfied with HMRC’s decision, you may have the option to escalate your appeal to the tax tribunal within 30 days of HMRC’s initial decision.