I have a penalty notice from HMRC, what should I do?

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The first step is to explore whether the penalty has been correctly charged. Penalties can relate to late or inaccurate returns, or failure to advise HMRC of a tax filing obligation for example, failing to notify HMRC when a charity breaches the VAT registration threshold and should register for VAT.

Unfortunately, each tax has its own penalty regime. This HMRC Help Sheet on Penalties provides a summary of how penalties are calculated and links to further guidance for each tax.

Appealing penalties

HMRC should only issue a penalty for inaccuracies if a taxpayer has failed to take ‘reasonable care’. If you disagree with a penalty, because you believe you have taken ‘reasonable care’, or you have a ‘reasonable excuse’ for failure to submit a tax return, then you will normally have 30 days from the date of the letter to appeal against the decision. If you miss this window, then you will probably not be able to appeal, unless there are extenuating circumstances.

If you have any questions about a penalty notice, you can contact the HMRC Charities Helpline.

How do I get in touch with HMRC?

The best route to get in touch with HMRC is to contact the Charities Helpline.

CTG does not provide tax advice and so the information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future.