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Peter, Chartered Tax Advisor
Category: Tax
Satisfied Customers: 127
Experience:  Director at PDS Tax Limited
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I have got outstanding Tax but most of the outstanding and

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I have got outstanding Tax but most of the outstanding and previously paid tax is penalties what should i do
JA: Have you talked to a tax professional about this?
Customer: no
JA: Anything else you want the Accountant to know before I connect you?
Customer: no

Hi, my name is ***** ***** I am a Chartered Tax Advisor. I have a few queries:

  1. Could you please let me know what the penalties relate to: ***** ***** of tax returns or late payment of tax or both?
  2. What was the reason(s) that you fell foul of the rules? Do you have any mitigating circumstances?
  3. What are the sources of income/gains to which the penalties relate?

Kind regards, Peter

Customer: replied 3 months ago.
Hi Peter,
Answer 1: Both
Answer 2: It were too many personal issues going on at that time.
Answer 3: Self Assessment

Ok thanks.

Without having seen any of the penalty notices and without having full visibility on your affairs, it is likely that the penalties have been raised lawfully and therefore they are payable to HMRC.

HMRC have discretion to reduce or cancel penalties (within limits) but it depends on the circumstances that lead to the penalties arising if you have a "reasonable excuse". HMRC considers a reasonable excuse to be “an unexpected or unusual event that is either unforeseeable or beyond the person’s control, and which prevents the person from complying...when they would otherwise have done.

If you speak with HMRC about your personal issues they may be persuaded to cancel the penalties. I would recommend you write down a list of all the personal issues which prevented you complying with tax law. The number to contact them and then call them on 03000(###) ###-####to request the penalties are reduced or cancelled.

If they do not agree that you have a reasonable excuse, the penalties should just be paid. HMRC may be willing to accept a payment plan if you do not have funds available to pay the penalties up front.

Good luck. If you have any follow up questions, I am happy to help. Otherwise please consider a 5 star rating for my answer.

I hope my answer was helpful. If you have any further queries please let me know. If you have no further questions please be so kind as to rate my answer.

I look forward to hearing from you.

Kind regards, Peter

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