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SA Penalty

SA Penalty

My client registered late for HMRC.  We received a notice to file a return and the return was filed by the due date. I thought the worst case scenario was a late registration penalty.

Instead I have received penalties of £600+ for late payments (@5% of tax unpaid)

Is this right?

Can I appeal?

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02nd Mar 2016 12:05

What would be your grounds for appealing? Was the tax not due and was it not late? It seems that is was, so I can't see any grounds for appeal.

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By thomas
02nd Mar 2016 15:36

Only because she was late in registering so the return due date was put back so I wondered if there was any scope for the same to apply to the payment date.

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02nd Mar 2016 15:55

Why late registered?

Was the late registering due to circumstances beyond her control? If not then I would think the only justification for late payment would be up to when the UTR was received (since there would be no reference to make the payment under until then). Otherwise you are effectively asking for cancellation of penalties that have solely arisen through your client's failure.

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02nd Mar 2016 17:53

Is a late registration penalty not what you have?

The late registration penalty is a percentage of the potential lost revenue.

You are presumably looking at an unprompted disclosure in respect of UK income notified within 12 months of the tax becoming due on the normal due date. That would put the client in the band 0-30% and HMRC have mitigated that down to 5%

 

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By thomas
03rd Mar 2016 09:46

Thanks for the replies.  The

Thanks for the replies.  The late registration was due to the client not realising he was a professional athlete and that he needed to register.

Do you thin there are any grounds for appeal?

 

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By thomas
03rd Mar 2016 10:30

The notice definitely says ' Late payment penalties'

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03rd Mar 2016 11:07

Check what sections are referred to on the penalties

thomas wrote:

The notice definitely says ' Late payment penalties'

... I seem to recall comments that the penalty letters are on pre printed paper that may expand on the relevant penalty & section in the body of the letter.

Otherwise:

Which tax year are we talking about for which the penalty has been raised?When was the requirement to file a return for that year issued by HMRC?When was the return submitted?When was the tax paid?

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By Jakarmi
03rd Mar 2016 10:47

The 5% surcharge applies if you don't pay your tax by the end of February.

The Return may have been due after the 31st January but you have filed this and still not paid the tax in the time it has taken the Revenue to send out the bill.

The client did have the opportunity between authorising you to submit the Return and the end of Feb to make the payment so I'd guess you don't have much hope in the appeal I'm afraid. Still it will only cost you a stamp if you wish to try.

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By thomas
04th Mar 2016 15:38

Tax year 13/14

Registered 21 Oct 2015

Notice to complete a return issued 29 Oct 2015

Submitted 20 Jan 2016

Tax paid 20 Jan 2016

 

Any thoughts?

 

Its a young athlete, this is a huge sum of money to him.

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By Malet
04th Mar 2016 16:35

Professional

Over a year late then in paying then! Why would you have thought there would be no penalties/surcharge?!

Ridiculous.

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By K81
04th Mar 2016 16:56

I don't think they are due


If the tax return is a  late issue then you have three months to file. This would have given you  until 29 January to file the tax return.
 Therefore no late filing penalties should be due.

Obviously interest & surcharge will still be due.

Have you queried with HMRC?

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04th Mar 2016 16:57

Interest and surcharge only

@K81. From the OP, it would appear they are only facing late payment penalties and interest. I agree that a late filing penalty would be wrong.

If the tax due is £12,000 (as the 5% penalty being £600 would indicate) then I think they are getting off lightly.

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04th Mar 2016 17:02

Wouldn't it be

A £6,000 liability and 2 x 5% late payment penalties?

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By thomas
07th Mar 2016 15:55

The tax was £6k and 2 x 5%. 

The tax was £6k and 2 x 5%.  I had hoped there might be some extension to the payment date as the filing date was extended. I guess not.  Thanks for all of your responses.

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