Penalty Appeals

If HMRC has issued you a penalty notice following your Self-Assessment, you may be able to appeal and potentially have the fine delayed, reduced, or even cancelled. We are here to help you understand the process and determine if appealing is worthwhile.

Common reasons for penalties include:

• Late submission of your Self-Assessment tax return
• Late payment of owed taxes
• “Failure to notify” – when HMRC believes you should have filed a tax return, but you haven't

HMRC has separate penalty structures for late filing and late payments, so if both apply, you’ll face two penalties.

Late Filing Penalties:

• £100 if you submit your tax return 1 day past the due date
• £10/day (up to £900) for up to 90 days past the due date
• An additional 5% of tax owed or £300 (whichever is greater) for delays up to 6 months
• Another 5% of tax owed or £300 (whichever is greater) for delays up to 12 months, which could be 100% of the tax owed in some cases

Late Payment Penalties:

• 5% of all taxes owed within the first 30 days
• Another 5% of all taxes owed within 6 months
• An additional 5% of all taxes owed within 12 months

We simplify understanding these penalties and guide you through the appeal process. Let Sigma Accounting help you navigate penalty appeals, ensuring you take the right steps to potentially reduce your fines.