A controversial fine, dished out by the taxman to a man who completed his tax return but made a small error, has been withdrawn following an investigation by HMRC.
The unnamed man was previously fined £1,400 after he made an error whilst requesting a tax rebate. He believed that he was owed £3,000 by HMRC however they calculated that he was owed just £1,000 and they subsequently fined him £1,400 for the over-estimation, which amounted to a 70 percent fine.
However in a rare show of kindness HMRC has cancelled the penalty, returned the money he paid, and also added an extra £100 in an act of goodwill.
The fine originally arose after HMRC stated that they will begin to fine people who they have deemed to make deliberate or grossly careless mistakes. The fines can be up to 100 percent of the difference between the amount HMRC decide is owed and the amount the taxpayer thinks is owned. The maximum fine is usually reserved for people HMRC think have deliberately concealed irregularities.
Tax investigator firm McGrigors represented the man in his appeal against the fine and Phil Berwick, a director at the firm, said: “It is gratifying that HMRC has seen sense and cancelled this outrageous fine”.