UK Tax Questions? Ask a UK Tax Advisor for answers ASAP
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.
The penalty regime has fallen into disrepute following incidents like these. HMRC are supposed to be back pedaling on the penalty system.
Providing that you have met your self assessment tax return dates then no penalty is due. You must appeal against these penalties which you do by writing a letter to the relevant tax office pointing out that they art, in fact, incorrectly imposed. As your letters rise through the hierarchy in the tax office they will eventually reach someone with a rather better understanding of the taxation system that is currently being displayed. It's all just a matter of prodding away until you achieve success. I recall on one occasion no less than five letters had to be written before it was revealed that the official in the tax office had assumed that a recipient of a State Pension got the basic rate, quite oblivious, despite being repeatedly reminded, of GPCs, SERPs and State Secondary Pensions all of which were in issue!
It's all very boring and a pain in the butt, but you just have to keep whittling away at HMRC.
I do hope that my reply has been of assistance.