Inland Revenue Penalties

[CrispDust]

As we all now know, penalties imposed by banks for returned cheques etc are unlawful as they are punative in nature.

Does the same apply to those penalty charges imposed by the Inland Revenue for late payment of tax? These charges are actually labelled PENALTY charges! They do not cover any extra costs incurred by the Inland Revenue and are simply and without argument, punative in every sense of the word. A profiteereing exercise for the Treasury. These penalties can be quite harsh - £100 for sending a confusing piece of paper back 1 day late, 5%, yes 5% of any outstanding tax after a certain time period (and they are still charging you interest at 8% APR).

Or do the Inland Revenue, as usual, consider themselves above the law?

[Seminole]

No these are charges enshrined in statute.

 

Bank charges fall under contract law.

[Celtic Tiger]

Once your Tax Return has eventually been filed and if you do not owe them any money, they will remove the late filing fee and any "interest" that it may have accrued.

I have recently received a tax REBATE of £1,200.00!!!

 

All late filing charges and interest have been dropped, my only gripe is that an amount of £44.78 was deducted from the total sum. This was called a "Repayment Supplement", what the hell is that then?

[Seminole]

It should have been added! A repayment suppliement is the Revenue's way of paying you interest on money it owes you. Unless this was an adjustment to the repayment supplement, you should ring up your Revenue office and complain.

[joneshousehold]

This subject has featured in several threads. Try searching Inland Revenue, you should find some of them.

 

Repayment supplement is the interest paid to you on an overpayment. I'm not sure how come it's been deducted from any overpayment but I suggest you get in touch with the helpline and ask them to explain it.