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HMRC internal manual

Self Assessment Claims Manual

From
HM Revenue & Customs
Updated
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Overpayment relief: Special relief: Penalties, surcharges and interest

Penalties

Fixed penalties for late delivery of an SA return are still payable following a claim for special relief but for years up to 2009-10, for which the penalty is capped to the total amount of the tax chargeable where it is less than £100, see SAM61030, the penalty will be revised to reflect the amount of tax due after special relief has been applied.

Any daily penalties imposed for non-delivery of an SA return are also not disturbed by a claim for relief even when the revised tax is reduced to nil.

These penalties will continue to be due in fairness to those people who have complied with their tax obligations within the statutory time limits.

Taxpayer objects to daily penalties on the grounds of proportionality

If, after special relief is given, the person maintains that any daily penalties still payable are disproportionate to the amount payable, then the dispute must be dealt with as a separate matter by the DMB office that has collection responsibility for the case.

Surcharges and interest

Surcharges and interest will also be reduced to reflect the amount of tax due after special relief has been applied.