Guides
HMRC penalties & appeals, explained
What HMRC charges, when, and exactly how to appeal it - cited to the figures and the case law, with no jargon. If a penalty landed on your desk, start here.
Penalties explained
- Self Assessment late filing penalties: the full breakdown for 2026Exactly what you owe for filing a Self Assessment tax return late - the £100 fixed penalty, £10 daily penalties, and the 6- and 12-month charges - and when each kicks in.
- HMRC late payment penalties and interest explainedWhat HMRC charges when you pay your tax late - the 5% penalties at 30 days, 6 months and 12 months, plus daily interest - and how to reduce or appeal them.
- The VAT penalty points system explainedHow HMRC's points-based penalty system for late VAT returns works since 2023 - how points build up, the £200 penalty threshold, and how points are removed.
How to appeal
- How to appeal an HMRC penalty: the 30-day process, step by stepThe exact process to appeal an HMRC late filing or late payment penalty - the 30-day deadline, appealing online vs form SA370, what to say, and what happens next.
- HMRC reasonable excuse: the Perrin test and what actually countsWhat HMRC accepts as a reasonable excuse for a late tax return or payment - the four-step Perrin v HMRC test, examples that work, and the excuses HMRC always rejects.
- Appealing an HMRC penalty to the First-tier TribunalWhat to do when HMRC refuses your penalty appeal - how the First-tier Tribunal (Tax) works, the deadline, the cost, and your chances.
- HMRC special reduction: reducing a penalty for special circumstancesWhat 'special circumstances' means, how special reduction differs from reasonable excuse, and when HMRC or a tribunal can reduce a penalty even if the excuse test is not met.
Paying HMRC
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