Archives >

Summer 2004 Newsletter

One Day at a Time

Everyone surely knows about the penalty for filing a tax return late - £100, or less if the tax has all been paid by the due date. Most people are not very scared of that penalty (at least, the statistics on late submissions suggest it doesn't have much effect).

There are nastier penalties that the Revenue can impose in certain circumstances - daily penalties for failing to file returns, or for failing to respond to notices requiring information. Usually, they have to take a case to the Appeal Commissioners to start daily penalties running, so they are not very common. Even where the Revenue go to the Commissioners, it's always possible to produce the information at that point and avoid the penalty.

However, several recent cases have been about people who have received these penalties and are now trying to avoid paying them. These penalties can quickly run into thousands of pounds, and they aren't reduced if the tax has actually been paid.

Sometimes, it seems that the penalties have arisen because the taxpayer was in dispute with the Revenue over what information was reasonably required. You may well think that their demands are unreasonable, but it's a high-risk strategy to refuse to meet them - if the Appeal Commissioners side with the Revenue, these penalties will be due.

If you have any request for information from the Revenue, we will be happy to advise you on what you should provide and when, and when you can justifiably object.