This guidance refers to tax returns received for 2009-10 and earlier. For further information regarding the new rules for the tax years 2010-11 and later, see SAM61200 onwards.
You will find general information on the handling of appeals in the business area ‘Appeals / Postponements’. When dealing with appeals against non-capping of fixed automatic penalties follow steps 1 - 12 as appropriate below.
Remember that before you can settle a reasonable excuse appeal against a fixed automatic penalty, the overdue return must be filed.
The guide is presented as follows
| |
Step 1 |
| |
|
| |
Steps 2 - 4 |
| |
Step 5 |
| |
Steps 6 - 8 |
| |
Steps 9 - 12 |
Initial action
| 1. |
Check whether the return has been filed and captured using function MAINTAIN RETURN SUMMARY |
| |
|
| |
If the return has been captured |
| |
* Go to step 2 |
| |
If the return has been filed but not captured |
| |
* Go to step 5 |
| |
If the return has not been filed |
| |
* Go to step 6 |
Return captured
| 2. |
Using function VIEW STATEMENT |
| |
|
| |
* Check that the total tax due for the year (shown in box 1 of the Tax Calculation Summary page TCS1; box 18.3 for years to 2006-07) minus any amounts paid at the filing date is equal to or more than the amount of the fixed automatic penalties charged |
| 3. |
If the amount payable is £100 (or £200 where the second penalty has been raised) or more |
| |
* Take no further action in connection with capping (the penalty is valid) |
| |
If the amount payable is less than £100 (or £200 where the second penalty has been raised) the penalty will have been capped automatically for returns for 2001-2002 and later years. But for returns for earlier years take the following action |
| |
* Send a WAM to ‘London North West Recovery’ entitled ‘Type 10 remission - SA Fixed Penalty Capping case’ to ask the Recovery Office to reduce (cap) the penalty |
| |
The Recovery Office will partially remit under Class 10 (cap) the fixed penalty to the amount of tax payable. |
| |
If there is nothing payable |
| |
* Cancel the penalty using function AMEND FIXED PENALTIES |
| 4. |
After you have dealt with the appeal |
| |
* Follow steps 10 - 13 below |
Return filed but not captured
| 5. |
If the return has been filed but not captured |
| |
|
| |
* Arrange early processing |
| |
And after capture |
| |
* Proceed as in steps 2 - 4 above |
Return not filed
| 6. |
Write to the taxpayer explaining that |
| |
|
| |
* You need the return to prove the claim for relief |
| |
* The penalty remains due and payable in the meantime |
| 7. |
If you believe that further tax may be due |
| |
* Ask the Recovery Office to make a Revenue determination |
| |
But do not do so just to force receipt of the return. You must have some clear indication that further tax is due. |
| 8. |
After writing to the taxpayer as in 6 above |
| |
* Follow steps 10 - 13 below |
Final actions - all cases
| |
After you have dealt with the taxpayer’s claim |
| |
|
| 9. |
Close the appeal using function MAINTAIN APPEALS |
| 10. |
Cancel the informal standover using Function MAINTAIN STANDOVERS |
| 11. |
Record the action taken using function MAINTAIN SA NOTES |
| 12. |
Advise the taxpayer of the outcome of the claim |
GOV.UK