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HMRC’s decision to give up late payment interest justified a special reduction in late payment penalties

By Mark McLaughlin, June 2019

A decision by HMRC’s interest review unit that it was at fault for the appellant’s late payment of tax justified a special reduction in late payment penalties to nil.  
 
The appellant filed his tax return for 2016/17 electronically on 5 January 2018, which showed a tax liability of £14,925. As at 3 March 2018, £5,116 of this amount (i.e. the balancing payment after deducting payments on account already made) remained unpaid. On 13 March 2018, HM Revenue and Customs (HMRC) assessed the appellant to a penalty of £255 (under FA 2009, Sch 56) because of the tax unpaid on 3 March 2018 (i.e. £255 was 5% of the unpaid tax).  
 
The appellant appealed. His grounds of appeal were that he had not received the self-assessment statement telling him the HMRC bank details he needed. This was due to HMRC sending post to the wrong address, something which was accepted by them and the

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