One of our new tax clients recently joined us with a bill for over £5,000 in tax penalties and fines from HMRC for ignoring a request for a self assessment tax return from HMRC 3 years ago.  The poor lad concerned had been unemployed for 2 years and earned way below the personal allowance until a year ago.  But, because he had ignored to file a tax return had incurred tax penalty after tax penalty and interest until he and his father brought him in to see us.  After putting the strongest case we could, HMRC eventually cancelled all of the tax payer’s penalties, fines and interest.  We don’t often see common sense behaviour from HMRC but in this case we eventually got through to someone who did the right thing.

The moral of this story is don’t ignore a letter from the taxman and seek professional advice if you find yourself with tax penalties, fines or in the spotlight for whatever reason.

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