Surcharges

Income Tax surcharges can arise if tax is not paid on time, and are additional to interest. If a tax payment is 28 days late then a surcharge equal to 5% of the tax unpaid by the following day is due. If tax is not paid within 6 months of the due date the surcharge rises to 10%.

• Surcharges can be appealed,
• The Appeal Commissioners or the First Tier Tribunal can - on specified conditions - confirm surcharges or set them aside but not alter the percentage loadings
• Surcharges can be successfully appealed on grounds of reasonable excuse
• Surcharges can be mitigated at HMRC’s discretion. But this mitigation can’t be appealed.
• If a surcharge is not paid within 28 days interest is charged.

Surcharges are issued by the HMRC computer.

The rules are complex. But it is always worth considering whether you had a reasonable excuse for the late payment. However, inability to pay is not a reasonable excuse according to the statute.

Our approach is geared to achieving the best result for you as quickly as possible.  While we aspire to a productive relationship with Inspectors of Taxes we will present your case vigorously and robustly.  At all times you will be kept informed of developments and options for settlement will always be clearly explained to you.

We will:

• advise on the surcharge legally due
• advise on whether there is a reasonable excuse
• advise on the merits of an appeal
• conduct negotiations with HMRC
• settle the issue

For further information please contact Iain Macleod on 0115 983 5580 or mobile 07920 146800 or email Iain at imacleod@edftax.co.uk