Tax penalties, 'all might not be lost'

Date: 2nd August 2010

Sole traders and small business owners who have been issued penalty charges for tax payments have been reminded that they have a right to appeal.

The Low Income Tax Reform Group (LITRG) has urged taxpayers to lodge an appeal with HM Revenue & Customs (HMRC) within 30 days of receiving a notice.

It comes as the organisation warned that those who have still to file their 2008-09 tax returns are likely to receive a second £100 penalty at some point during this month.

The LITRG said that even if the deadline was missed, some taxpayers may be able to appeal the fines if they have a "reasonable excuse".

"Under current rules, the £100 fixed penalty should be reduced to nil if you had paid all the tax due for 2008-09 by January 31st or had no tax to pay," it explained.

"If you owed less than £100 at that date, the penalty is limited to the amount you owed."

Posted by Jacob Williams