WTF are the HMRC trying to do to me! Late penalty over 3p from 2018

[MiddleOfThePack]

I recently successfully appealed a penalty for late filing [self assessment] from last tax year [y/e 2020], as I don't actually have to do one - I don't earn enough. I called them as they then told me I had £52 o/s from 2017 and I was happy to pay that.

I have just had an email from them [legit - I checked] stating that there was a message for me. I logged on to my tax account and they have clobbered me for 3p from y/e 2018 - penalty of £300. Why did they not mention this when I called them to pay for 2017?!

WTAF?

I think it is because it is all computerised. I have had some crazy requests and appealed them and they withdrew them. Once a person actually sees them they realise how absurd they are.

You should appeal it. If necessary you could refuse to pay. They're very unlikely to sue you for this.

I can't pay it by d/d as I don't have any payment reference to pay it against - no letter has been sent to me. Still says I'm due to be clobbered 20th Feb, so may just sit tight. I have screen dumped everything in case it does go out and I need to appeal.

The penalty will be for not submitting the tax return - it won't be for not paying the tax. You need to phone them to see if they'll withdraw the "notice to complete a SA return", either that, or you need to submit the return.

It can’t be a late filing penalty for last year (ended 5 April 20) as it’s only due on 31 Jan.

@ForensicAccountant

It can’t be a late filing penalty for last year (ended 5 April 20) as it’s only due on 31 Jan.

The OP says it's re 2018!

It won’t be a late payment penalty as they are a percentage of tax so if the tax you owed was low it can’t be that. When did you submit your return? Returns are due 31 jan if filed online or 31 Oct if filed on paper

@Morph2lcfc

It won’t be a late payment penalty as they are a percentage of tax so if the tax you owed was low it can’t be that. When did you submit your return? Returns are due 31 jan if filed online or 31 Oct if filed on paper

Ist late penalty £100 2nd late penalty £300 Late penalties are fixed, not percentages.

www.gov.uk/self-assessment-tax-returns/penalties

Kazzyhoward>

The link you have posted is for late filing penalties for filing the return late. Late payment penalties are a additional thing and are a percentage of the tax due. I can 100% assure you this is fact as it’s been my job since self assessment was introduced about 20 years ago, the link below explains this

www.gov.uk/hmrc-internal-manuals/self-assessment-legal-framework/salf308a

[quote Morph2lcfc]Kazzyhoward>

The link you have posted is for late filing penalties for filing the return late. Late payment penalties are a additional thing and are a percentage of the tax due. I can 100% assure you this is fact as it’s been my job since self assessment was introduced about 20 years ago, the link below explains this

www.gov.uk/hmrc-internal-manuals/self-assessment-legal-framework/salf308a[/quote]
Yes, I'm the same, an accountant for nearly 40 years. A round £300 fine is for late filing, not late payment. The OP says in her opening post that it's £300 fine re the 2018 return. I see no other reason for a round sum fine, i.e. chances are it's for late filing rather than late payment.

Kazzyhoward- the title says “late payment penalty over 3p’ which indicates the op thought it was because she hadn’t paid 3p that’s why I said it wouldn’t be as as late payment penalties are a percentage. As you say in your second post it’s a prob a late filing penalty in which case the amount outstanding is irrelevant but the op doesn’t seem to know this hence the comment about the 3p

@Morph2lcfc

Kazzyhoward- the title says “late payment penalty over 3p’ which indicates the op thought it was because she hadn’t paid 3p that’s why I said it wouldn’t be as as late payment penalties are a percentage. As you say in your second post it’s a prob a late filing penalty in which case the amount outstanding is irrelevant but the op doesn’t seem to know this hence the comment about the 3p

That's why I said it would be for late filing in my first post!!!!

I'm a bit confused - I don't know where the 3p came from. When i paid off the tax owed, I was guided through by an adviser from HMRC and paid off all arrears. She then said all was clear, so why no mention of the additional £300?

OP, just phone them. I know you'll be on hold for hours but they will probably just cancel the whole thing.

So - you paid up for 2017.

Then you were still on the system for SA in 2018, and did not file (because you thought they had removed your requirement to file with the 2017 call.)

They charged you £300 for late filing (not filing!)

Just call them again and repeat that you thought that you had been removed from the SA requirement to file. Make sure this has been noted for ALL subsequent years...

Yup - tried phoning but as I'm trying to wfh too, it's not great.

I tried their chat line - that was even less effective! I refreshed the screen until it said an adviser was available, but in the time it took me to type my name and a subject, they'd gone unavailable again!

Happened several times, so I've sent a support call in. That one was acknowledged by email and they say they'll respond in 2 days, so will see what happens!

Tried online chat/phone, but then found a form to file an appeal, so I sent that off instead. See what happens.

Can I check if you ever got anywhere with this? I am in a similar position and I don’t know what to do. Sent in an appeal and I have nor heard anything back.