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HMRC internal manual

Self Assessment Manual

From
HM Revenue & Customs
Updated
, see all updates

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

  Steps 1 - 4 then step 10
   
  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.