Breaking news from the BBC Paper tax returns to be replaced by digital by 2020


Chancellor George Osborne delivers his last budget before the General Election


Tax planning for 5 April 2015


Record amount of VAT collected from small firms


Key Tax Deadlines for the Tax Year 2011-2012. 18/03/11


RTI and PAYE late payment penalties.


Contact Us
News Items
Tax Tips

Great with People
Brilliant with numbers
Clear and precise with words

Call us now on 023 8083 6900 ABDS Home

Tax Tip

HMRC send out incorrect penalty notices. 02/05/12

The 10.5 million taxpayers in self-assessment had until 2 February to file their forms, and HMRC has written to 650,000 who failed to do so to fine them £100 and warn them that from 1 May they face penalties of £10 a day.

However, having removed 130,000 people from self assessment because they no longer need to complete a tax return, HMRC has sent daily penalty notices to almost 12,000 of them in error.

A spokesman for HMRC said these people would receive follow-up letters telling them there had been a mistake, but in the meantime they could put them in the bin. The spokesman added:
 "It is very unfortunate that this process error has taken the shine off the good news that we have taken 130,000 people out of self-assessment."

Stuart Coleman, Manager of the Tax Department of ABDS says:

“This incident is the third to occur in this area in the past year. In March, HMRC sent 17,000 letters wrongly claiming that payments were late, and a lack of paper reportedly caused a number of statements of account to be sent out after the 31st July deadline last year. They also underestimated the amount of work the data cleansing entailed, resulting in the re-allocation of over 300 staff to the task”

If you have any questions or concerns about Tax Planning and compliance, contact Lavinia Newman, Stuart Coleman or Tonmoy Kumar to discuss how ABDS can help

ABDS Chartered Certified Accountants of Southampton.
Tel: 023 8083 6900  E-mail:

Great with People  Brilliant with numbers Clear and precise with words

« Back to Tax Tips