A wee while ago I wrote about the case of a self-employed Kent tradesman who was fined £1,400 for mistakenly overclaiming a £2,000 rebate under HMRC's new penalty regime.
HMRC fined him £1,400 after he tried to reclaim £3,000. HMRC calculated that he was in fact owed £1,000, and fined him 70% of the difference between the two sums.
HMRC has now cancelled the fine and repaid the man the £1,000 in tax that they owed him, plus £100 as a goodwill gesture because of "irregularities" in his case.
Tax does have to be taxing.
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