Default Surcharge: Reviews and appeals: Circumstances in which a surcharge may be cancelled
A surcharge may be cancelled because
- the return and payment were dispatched in time to reach HMRC by the due date
- a surcharge has been calculated at too high a rate or that part payment of the tax due has not been taken into account
- there are exceptional circumstances which justify removal of the default
- there is a reasonable excuse for the default.
Note: There is no right of appeal against a Help Letter as this is not part of the default surcharge system. Nevertheless as a matter of policy you should cancel a default that resulted in a Help Letter being issued if there is a reasonable excuse.
If a Help Letter is cancelled you may also need to amend any subsequent defaults.