Readers may be aware of media reports mooting that HMRC are now taking a more relaxed approach to appeals against self-assessment late filing penalties. HMRC have now issued a statement dealing with the matter.

The release confirms that HMRC wish to focus more of their resources on investigating major tax avoidance and evasion rather than issuing penalties to “those ordinary people who are trying to do the right thing”.

But it’s important to make clear that the deadline for appealing penalties for 2013/14 tax year has now passed. Those who have already appealed will only be successful if they’ve now sent in their return, paid the tax due, appealed and have a reasonable excuse for late filing.

This is part of HMRC’s planned, proportionate approach to penalty appeals, particularly for small businesses and individuals.

In addition, the more complete picture that digital technology gives HMRC means, in the longer term, that HMRC wants to move away from sending out penalty notices as a mechanical reaction to a single missed deadline. HMRC will be able to track patterns of behaviour so that they can focus on those who persistently fail to pay or send their tax returns on time. This new approach was set out in a recent discussion document.