Incorrect 2007/8 penalty notices
HMRC have notified the main agent representative bodies (known collectively as the Working Together partnership) of errors on some 2007/8 self assessment penalty notices. The incorrect notices have been issued to taxpayers who filed paper returns late and who are settling tax due through PAYE.
This particular issue affects taxpayers who submitted paper returns between 1 November and 31 December 2008 and asked to settle the tax due through PAYE. Although technically the return was submitted late (the deadline for paper returns was 31 October 2008) the late filing penalty should have been nil.
This was not the case and penalty notices are currently being sent to taxpayers within the above scenario. HMRC is working to identify the relevant taxpayers to send a letter of apology and cancel the penalties charged in error.