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Advice re 2010/11 SA penalties on commencement of a trade

Dear all

A new client registered as self employed (on cwf1) from 8 Mar11 and, subsequently, commenced trading on 23 Mar11. Year 1 accounts will be made up to 31 Mar12, however, HMRC issued a SATR and have since levied penaties of £100, £900 and £300 (total - £1,300).

My queries are:

1 - can the client argue that a 2010/11 self assessment cannot be determined until the Mar12 accounts have been prepared (as is the case)?

2 - if an assessment is required for the period from 23 Mar11 - 5 Apr11 is there a firm/valid basis for an appeal against the penalty?

The client was also working abroad for the 6 month up to 13 Jul12 and therefore had difficulty dealing with the penalties when eventually becoming aware of them

All comments will be appreciated

Lew

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I assume SATR = Self Aseesment Tax Return?

 

If so, the obligation to file is running, and may well have been past the due date, hence the penatlies! You will need to file the 2010/11 return with estimated profit or loss figures and amend once the actuals are known.

 

Assuming the notice to issue a return was properly issued by HMRC, no grounds for appeal!

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10th Aug 2012 16:02

@mawallace

is there not an argument that 23-31 Mar11 is small/immaterial for the purposes of 10/11?

thanks for the contribution

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