Tax & Accounting News
HMRC criticised over tax penalty practices
15/11/2011
HM Revenue and Customs (HMRC) has been criticised for sending penalty notices months after deadlines – allowing large fines to build up.
In two recent tax tribunals, Hok Limited & HMD Response International v HMRC, the tax authority was criticised over the issuing of penalty notices for employer’s end of year returns for the 2009/10 tax year.
The tribunal heard that HMRC has sent out penalty notices months after the deadline, which allowed penalties to accumulate.
However, following the tribuna,l it have been discovered that HMRC has still not updated its system to send out penalty notices before the fines begin to accumulate.
Many taxpayers have received letters in September charging them £400 over the period May to September this year – their first such letter about the fine.
Critics say HMRC seem to have “steamrolled” through regardless of the findings of the first tier tribunal cases.
