Penalties and Debt

The temporary suspension of penalty and debt activity, introduced in March 2020, has now ended.

Where a tax return or tax remains due, this must be submitted and paid on time. Penalties may be charged if a tax return or payment has not been made on time. For more information see RSTP3001 - Penalties

Revenue Scotland will however take proportionate measures to alleviate the burden on taxpayers potentially facing penalties for late returns or payments.

We encourage any taxpayers encountering financial difficulties resulting from the COVID-19 pandemic to contact us as soon as possible, particularly if this is likely to affect your ability to pay tax on time. Please email: rsdebt@revenue.scot

FAQs - General

Q: Why have I been sent a penalty notice?

A: A penalty notice has been issued because a tax return or payment has not been made on time. For more information on penalties see: RSPT3001 - Penalties

Q: Why am I only now being sent a penalty notice?

A: A penalty notice would normally be issued if a tax return or payment has not been made on time. Revenue Scotland suspended activity on penalties and debt at the start of the COVID-19 pandemic. This activity resumed in November 2020.

Any taxpayers encountering financial difficulties resulting from the COVID-19 pandemic are encouraged to contact us as soon as possible, particularly if this is likely to affect your ability to pay tax on time. Please email: rsdebt@revenue.scot

Q: I have received a penalty for a return I have been unable to submit because of COVID-19, what should I do?

A: Any taxpayers unable to submit a return should contact us as soon as possible to discuss. If you feel you have a reasonable excuse, you should email: reviews@revenue.scot providing full details on why you feel this stopped you from submitting your return / paying your tax on time.

Revenue Scotland may reduce, suspend or cancel a penalty for failing to submit your return or pay your tax in time if you have a reasonable excuse. For more information on reasonable excuse in relation to penalties see RSTP6009 – Reasonable excuse 

After reading the guidance, if you feel you have a reasonable excuse you should email: reviews@revenue.scot

Q: COVID-19 has affected my ability to pay the tax/penalty: I cannot pay the tax/penalty, what should I do?

A: Any taxpayers unable to pay the tax/penalty should contact us as soon as possible to discuss, please email: rsdebt@revenue.scot

Revenue Scotland may reduce, suspend or cancel a penalty for failing to file your return or pay tax on time if you satisfy us that you had a reasonable excuse and have since met your obligation. For more information on reasonable excuse in relation to penalties see RSTP6009 – Reasonable excuse

If you feel you have a reasonable excuse you should email: reviews@revenue.scot

Q: Why have you not sent this debt letter before now?

A: During the start of the COVID19 pandemic Revenue Scotland paused activity on penalties and debt.  This work recommenced on 10 November 2020. Taxpayers are encouraged to get in touch if they feel they need further support due to the pandemic affecting their personal circumstances.

Q: COVID-19 has affected my personal circumstances I cannot pay the tax/penalty, what should I do?

A: If you are unable to pay your tax / penalty you should contact Revenue Scotland as soon as possible to discuss this. Please email: rsdebt@revenue.scot

Q: Why has a penalty been applied to this return?

A: A penalty has been applied to the return as according to the information we have you have either not filed the return on time, paid the tax on time, or both.  You will receive a notice in the post in relation to this.

Q: Why have I been issued a penalty whilst we are going through a pandemic?

A: The penalty has been issued because you did not submit your tax return on time. If you feel you have been affected by COVID-19 you should email: reviews@revenue.scot providing full details as to why you feel this stopped you from submitting your return / paying your tax on time.

For more information on reasonable excuse in relation to penalties see RSTP6009 – Reasonable excuse