Can you appeal a self-assessment penalty? If you’ve been hit with a fine, you might have options, but only under certain conditions. Here’s what you need to know.
Key Takeaways:
You can appeal a Self Assessment penalty within 30 days if you have a valid reason.
Appeals can be made online via Government Gateway or by post using SA370 form.
Reasonable excuses include illness, bereavement, or technical issues.
If rejected, you can request a review or escalate to a tax tribunal.
When Can You Appeal a Self-Assessment Penalty?
You can submit an HMRC penalty appeal only if you have a reasonable excuse - a legitimate reason beyond your control that prevented you from filing or paying on time.
Valid excuses include:
Serious illness or hospitalisation.
A recent death of a close family member.
HMRC system failures.
Unforeseen events like fire, flood, or theft.
Excuses that won’t work:
Forgetting the deadline.
Not having enough money to pay.
Misplacing tax records.
Keep in mind that you can always get extra support because of your personal circumstances or health condition by contacting HMRC.
How to Appeal a Self-Assessment Penalty?
To appeal a Self Assessment penalty, you should follow these steps:
Ensure Eligibility
Confirm you have a reasonable excuse for late filing or payment, as we discussed above.
Gather Necessary Information
You'll need:
The date the penalty was issued.
The date you filed your tax return.
Details of your reasonable excuse.
Submit Your Appeal
Appeals must be made within 30 days of the penalty notice date. You can appeal:
Online: Log in to your HMRC online account and follow the instructions to appeal a penalty.
By Post: Complete form SA370 and send it to:
Self Assessment
HM Revenue and Customs
BX9 1AS
United Kingdom
Await HMRC's Response
HMRC will review your appeal and inform you of their decision.
What Happens After You Appeal a Self-Assessment Penalty?
Once you submit your appeal, HMRC will review your case and notify you of their decision.
If your appeal is accepted
The penalty will be cancelled.
If you’ve already paid a Self Assessment penalty and your appeal is successful, HMRC may refund the penalty amount. However, for Self Assessment late payment penalties, HMRC will still charge interest on any overdue tax, even if the penalty itself is removed.
If your appeal is rejected
You must pay the penalty.
You can request an internal review within 30 days.
If still dissatisfied, you can appeal to the Tax Tribunal.
You must act quickly, as deadlines apply at each stage.
What We Think
Appealing a Self Assessment penalty isn’t always easy, and HMRC’s rules on reasonable excuses can feel strict. Some situations, like serious illness or system failures, are accepted, but others, like forgetting the deadline, aren’t. Is that fair?
For small business owners and freelancers, these penalties can be frustrating, especially when deadlines are already stressful. The 30-day appeal window is also quite short, making it tough for those facing real emergencies.
On top of that, many taxpayers are surprised to receive a late tax return penalty if no tax due - a rule that often feels unfair for those who had nothing to pay in the first place. HMRC could make the process clearer and more flexible for genuine cases.
If you need to appeal, act fast, provide strong evidence, and keep your tax records organised. Even better, avoid penalties in the first place with automated bookkeeping and tax reminders to stay on top of deadlines.
How JAFA Can Help
JAFA helps you stay ahead, so you never have to worry about unexpected fines.
Never miss a deadline - Our automated tax reminders ensure you file and pay on time, avoiding last-minute stress.
Keep records organised - We use AI technology for bookkeeping to help you track income and expenses, so you have the proof you need if you ever need to appeal.
Get expert guidance - If you’re unsure about penalties or appeals, our tax experts provide clear, simple advice tailored to your situation.
With JAFA’s automation and expert support, you can stay compliant, avoid penalties, and focus on running your business without tax stress.
Contact our expert accountants in Birmingham, UK, either by booking a FREE discovery call or calling us on +44 121 227 6277.
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