First for hmrc

While that's obviously completely outrageous, it will teach him to get an accountant to do his tax return next time.

While it's an attention grabbing headline, we were discussing this in the office and there must be more to this than meets the eye.

The headline is inaccurate.

He asked for a refund of 3k, and HMRC deemed him liable for a refund of 1k.
The fact that it's a refund is irrelevant - he understated his tax liability to the tune of £2k and that's why he was penalised.

I'd likke to thinke that had he had an accountant, he could have negotiated the penalty % down - but then we don't know the exact facts of the case.

The headline is just attention-grabbing though, and really gives the wrong impression. It is scary, though, how HMRC seem to be applying the new penalty regime in certain cases.

Isn't it nice to know we have such competent bods for Her Maj.