Case Study – Punitive Penalties Refunded on Appeal

One of our clients recently had £1,600 in penalties refunded by HMRC after we successfully appealed the charges. What’s more, we managed to get nearly £3,000 in tax back on top!

The taxpayer, who isn’t self employed and receives no untaxed income, was shocked to be landed with a hefty bill for non-submission of returns under the self assessment regime. He couldn’t understand how the situation had arisen.

After some investigation and digging through his tax documents, we realised that our client had never received a formal notice to complete the returns, and as he had no untaxed income there was no requirement for him to complete a return under the rules. This was our grounds for appeal.

Added to that, after further checks, it appeared that HMRC were taxing him as though he had been provided with a company car by his employers. This was incorrect and resulted in HMRC taking too much tax from him under PAYE.

In these situations, the only way to straighten things out is to complete a tax return with the correct information. Once the return is submitted the appeal can be lodged.

Happily with our help there was a successful outcome to this case. Unfortunately not everyone is so lucky: HMRC do make mistakes – a situation made far worse during Covid – and often these mistakes go unnoticed leading to overpayments of tax. We would always advise taxpayers to check any paperwork received from HMRC, and if in doubt speak to them direct, or talk to us for advice and get mistaken penalties, refunded.

If you have questions or concerns about your tax documentation, get in touch today.

This site uses cookies. Privacy Policy

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.