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Thought id let AAD'ers know of a recent first tier tribunal ruling that could potentially help sucessfully appealing against daily penalties for failing to submit a self assessment in time.
It should be said, that a first tier tribunal is not concrete and can be overruled in the future. (Much like a county court ruling being overruled by a high court)
However, with that being said, the ruling was to decide whether HMRC had given an "notice" of intended penalties of £10 per day, or were the letters tax payers received, were in deed just "warnings". And if they were only warnings, then they failed to comply with regulations.
Further more, the original ability put in place to charge tax payers a daily penalty rate, was first set up as a way to deter tax payers from not submitting their tax returns in time, and not how it is currently being used, a way to collect revene.
So to summerise, HMRC are allowed to charge a daily rate of £10 per day for late tax returns, and can in some circumstances, backdate the start date of when the penalities become due, however if the notice's which are requred to be sent, informing the tax payer of this, does not comply with what is considered a notice under the regulations. Then they can not lawfully charge these daily rates.
I have a PDF which explains this better sent to me from Tolly's and i will attach it to this thread. It gives you some of the information surrounding the case, and some references to each legislation.
It should be said, that a first tier tribunal is not concrete and can be overruled in the future. (Much like a county court ruling being overruled by a high court)
However, with that being said, the ruling was to decide whether HMRC had given an "notice" of intended penalties of £10 per day, or were the letters tax payers received, were in deed just "warnings". And if they were only warnings, then they failed to comply with regulations.
Further more, the original ability put in place to charge tax payers a daily penalty rate, was first set up as a way to deter tax payers from not submitting their tax returns in time, and not how it is currently being used, a way to collect revene.
So to summerise, HMRC are allowed to charge a daily rate of £10 per day for late tax returns, and can in some circumstances, backdate the start date of when the penalities become due, however if the notice's which are requred to be sent, informing the tax payer of this, does not comply with what is considered a notice under the regulations. Then they can not lawfully charge these daily rates.
I have a PDF which explains this better sent to me from Tolly's and i will attach it to this thread. It gives you some of the information surrounding the case, and some references to each legislation.