SAM61261 - Interest, penalties and surcharge: penalties: cancelling a penalty for tax years 2010-2011 onwards (Action Guide)

Where a penalty needs to be cancelled follow steps 1 - 10 below.

The guide is presented as follows

Individuals/Trusts - Steps 1 - 4, then step 10
Partners/Partnerships - Steps 5 - 10

For details of how to access the SA functions, select ‘Index of functions’ on the left of the screen

Individuals/Trusts

1. From the User Role function menu in the ‘Returns’ area

  • Enter the taxpayer reference
  • Select ‘VIEW/CANCEL PENALTIES’
  • Enter the relevant year

2. Select the relevant reason for cancellation from the drop down list which shows

  • 1 = Incorrect Logging
  • 2 = Duplicate record
  • 3 = Cessation
  • 4 = Reasonable Excuse
  • 5 = Other

3. From the list provided identify the relevant penalty

  • Enter ‘Y’ in the Cancel field

4. Select the [Update] button

Notes:

a. To ensure the penalty is cancelled, the [Update] button must be selected. If the [OK] button is selected, the penalty will not be cancelled

b. Take care to select the correct penalty as once cancelled a penalty cannot be reinstated automatically. If a penalty is cancelled incorrectly, use function CREATE SUNDRY CHARGE to raise a miscellaneous penalty charge

Partners/Partnerships

5. From the User Role function menu in the ‘Returns’ area

  • Enter the partnership reference
  • Select ‘VIEW/CANCEL PENALTIES’
  • Enter the relevant year

To cancel a penalty for a specific partner follow step 6 onwards

To cancel a penalty for a specific partnership, follow step 7 onwards

6. In the reference field

  • Enter the UTR for the partner
  • Select the [OK] button

7. Select the relevant reason for cancellation from the drop down list which shows

  • 1 = Incorrect Logging
  • 2 = Duplicate record
  • 3 = Cessation
  • 4 = Reasonable Excuse
  • 5 = Other

8. From the list provided, identify the relevant penalty

  • Enter ‘Y’ In the Cancel field
  • Select the [Update] button

Note: Take care to select the correct penalty as the penalty cannot be reinstated automatically by the system after cancellation. If a penalty is cancelled incorrectly, use function CREATE SUNDRY CHARGE to raise a miscellaneous penalty charge

9. Select the [Exit] button to leave the screen

10. Make an SA Note to show why the penalty has been cancelled