Special reduction applies to penalties

On 23 June 2023 the taxpayer enrolled for self assessment the day after he received a notice from HMRC to complete a 2021-22 tax return and submit it by 29 September 2023. He had previously signed up to receive paperless communications. He filed his return on 31 August 2023 and paid the tax due on 20 September 2023.

On 5 September 2023 HMRC sent a notice of a 30-day late payment penalty for £124 and a six-month late payment penalty for £124. This was on the basis that the tax had been due on 31 January 2023. The notice was sent electronically to the taxpayer’s online tax account. The taxpayer appealed.

The taxpayer explained that the income tax liability had arisen in respect of the high income child benefit charge (HICBC). He accepted that he had not notified HMRC or made the payment on time. However he...