HMRC Error Causes Unnecessary Fine for Taxpayer

2 min read

In a recent encounter involving HMRC and a taxpayer, frustration arose when the individual received a penalty for the late filing of their self-assessment, despite not meeting the requirements to complete the form. Seeking assistance, the individual reached out to HMRC for clarification after receiving a penalty notice, believing they were not obligated to file the return.

On May 11, the individual initially contacted HMRC for clarification and support in resolving the issue. They expressed confusion after receiving a penalty notice for the 2022 to 2023 tax year, believing they did not meet the eligibility criteria for filing the return. Additionally, they were directed to a specific form on the HMRC website to inform the tax body that they no longer needed to file a tax return, with the potential of cancelling the penalties.

Following a delay in communication and a lack of response from HMRC, the individual followed up to express their ongoing concern and highlighted the increase in their penalty, which now exceeded £120. HMRC assured the individual that if they had indicated online that they did not need to file a return for the specific tax year, the matter would be reviewed, and any penalties would be automatically removed.

However, even after submitting their request online, the individual did not receive any follow-up correspondence. HMRC informed them that a final decision would not be provided until around July 3, leaving the individual in a state of uncertainty.

Late filing penalties for tax returns typically start at £100 and increase for forms filed even later than the initial three-month period. This case highlights the importance of clear communication and accurate processing by HMRC to avoid situations such as the one faced by this taxpayer.

In conclusion, this incident serves as a reminder for individuals to communicate clearly and promptly with tax authorities to prevent unnecessary penalties and complications. It also highlights the challenges that can arise when dealing with bureaucratic processes and the significance of timely and efficient resolution.

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