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TMA70/S59C

TMA70/S59C only applies to the 2009-10 tax year, and any previous tax year.

See CH155000+ for 2010-11 and subsequent tax years

SA surcharges are in effect, but not name, penalties for failure to pay on time.

Surcharges are “fixed� in amount, not the “maximum� type. They are fixed by a formula: they are “tax-geared�.

Just as TMA70/S97A prevents two tax-geared penalties on the same tax, S59C(4) prevents a surcharge on tax to which a tax-geared penalty - TMA70/S7(8), S93(5), S95, S95A, FA07/Sch24 - has been charged.

It follows that contemplation of a small percentage penalty loading in a case where 10% surcharges have already been incurred, and probably already charged by the computer program, may not be a cost-effective use of resources, since imposition of the penalty would require cancellation of the surcharges.

• Like all penalties, and unlike interest, surcharges can be appealed, EM4108.
• As for all fixed-amount penalties, the tribunal can - on specified conditions - confirm surcharges or set them aside but not alter the percentage loadings (which have been fixed by statute), EM4108.
• Like all failure penalties surcharges can be successfully appealed on grounds of reasonable excuse, though they have their own conditions, EM4109.
• Like all penalties, surcharges can at the HMRC’s discretion (not a matter for appeal) be mitigated, EM4111.