Corporation tax penalty

Corporation tax penalty

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Recently filed (Jan) two corporation tax returns for a client and he has now been issued with a £200 penalty for one of them. Logically I guess I agree with the HMRC.

Clients 1st years account ran for the year to 30 April 2009 (incorp 29/04/08) - until I did the accounts in Dec I didn't know that the client hadn't actually left his employemnt and started trading until 1st Sept 08. Consequently when putting in the trading date starting as 1st Sept 08 the software generates 2 tax returns. Client is now being penalised for the late submission of the 1st tax return (ie as should of been in 31/08/09) - but I didn't know this until I did the accounts and to be honest didn't even think about them raising a penalty. Tax deadline letters issues by HMRC only state they need to be in by 30/04/10 as obviously they didn't know about the dates until I put two returns in!

Where do I stand on this one in terms of appealing with HMRC?

Replies (6)

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By User deleted
26th Jan 2010 10:14

amended return(s)

You need to file amended returns - same numbers different dates.

(I haven't actually worked out the dates etc or the effects but you can do that!

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By Euan MacLennan
26th Jan 2010 10:34

No need to amend

Presumably, the first CT600 covering the period from incorporation to 31 August 2008 was a nil return and the second CT600 was a correct return for the first CT accounting period from 1 September 2008 to 30 April 2009.  If so, there is nothing to correct.

The filing date for any CT600 is 12 months after the date of the accounts on which it is based, so the filing deadline for both of your CT600s is 30 April 2010.  Write to the Revenue to tell them to cancel the penalty which they have no legal right to impose.

I think you were ill advised to file the first CT600 nil return for what was not a CTAP as the company had not started trading.  It would have been better to write to or even, 'phone the CT district to explain.

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By zarathustra
26th Jan 2010 10:36

Due date 30/04/10

Surely when 2 CTAP s form part of one AP the deadline for submission becomes 12 mths after the end of the AP for BOTH returns ?

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By PStreet
26th Jan 2010 11:27

Thank you!

Thanks for your help - I will phone them up, just one more hassle not needed in January!!

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By User deleted
26th Jan 2010 17:03

2 deadlines

I agree with zarathustra on this. I am sure there is a twelve month deadline for each separate CT return on a long period of account.

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By User deleted
26th Jan 2010 17:08

HMRC mistake!

All sorted now - many thanks to everyone, I just wanted to ahev my facts straight before I phoned HMRC. They have indeed made a mistake and shoudl never have raised the penalty as it is indeed in one periof of account not due for filing until April 2010!

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