SolvedSAM61261 | Interest, penalties and surcharge: penalties: cancelling a penalty for tax years 2010-2011 onwards (Action Guide)
From HM Revenue & Customs · Self Assessment Manual
Where a penalty needs to be cancelled follow steps 1 - 10 below.
The guide is presented as follows
Individuals/Trusts - Steps 1 - 4, then step 10
Partners/Partnerships - Steps 5 - 10
For details of how to access the SA functions, select ‘Index of functions’ on the left of the screen
Individuals/Trusts
1. From the User Role function menu in the ‘Returns’ area
Enter the taxpayer reference
Select ‘VIEW/CANCEL PENALTIES’
Enter the relevant year
2. Select the relevant reason for cancellation from the drop down list which shows
1 = Incorrect Logging
2 = Duplicate record
3 = Cessation
4 = Reasonable Excuse
5 = Other
3. From the list provided identify the relevant penalty
Enter ‘Y’ in the Cancel field
4. Select the [Update] button
Notes:
a. To ensure the penalty is cancelled, the [Update] button must be selected. If the [OK] button is selected, the penalty will not be cancelled
b. Take care to select the correct penalty as once cancelled a penalty cannot be reinstated automatically. If a penalty is cancelled incorrectly, use function CREATE SUNDRY CHARGE to raise a miscellaneous penalty charge
Partners/Partnerships
5. From the User Role function menu in the ‘Returns’ area
Enter the partnership reference
Select ‘VIEW/CANCEL PENALTIES’
Enter the relevant year
To cancel a penalty for a specific partner follow step 6 onwards
To cancel a penalty for a specific partnership, follow step 7 onwards
6. In the reference field
Enter the UTR for the partner
Select the [OK] button
7. Select the relevant reason for cancellation from the drop down list which shows
1 = Incorrect Logging
2 = Duplicate record
3 = Cessation
4 = Reasonable Excuse
5 = Other
8. From the list provided, identify the relevant penalty
Enter ‘Y’ In the Cancel field
Select the [Update] button
Note: Take care to select the correct penalty as the penalty cannot be reinstated automatically by the system after cancellation. If a penalty is cancelled incorrectly, use function CREATE SUNDRY CHARGE to raise a miscellaneous penalty charge
9. Select the [Exit] button to leave the screen
10. Make an SA Note to show why the penalty has been cancelled