The Low Incomes Tax Reform Group (LITRG) has explained how taxpayers who have been fined for filing their tax return late may be able to have the penalties cancelled.
A taxpayer who does not meet the criteria for self-assessment for a year can ask HMRC to withdraw the notice to file a return. If HMRC agree, any late filing penalties for that return will be cancelled automatically. Taxpayers must make this request before filing the return, as a filing requirement cannot be withdrawn after the tax return has been filed.
Alternatively, taxpayers may argue that they have a reasonable excuse for late filing or that special circumstances apply.