The company has been dormant since inception and has just received to £100 fines for not filing a CT600.
Can we appeal against these, as no return was required for the period?
What is the best way of dealing with this
Many thanks
Sarah Kedgley
Replies (5)
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Agree with Rob
CT600 penalty not mitigated by low / no tax due.
Also common mistake I've seen made is believing partnership SA late filing penalty can be reduced. Again no mitigation for low / no tax. Gets expensive as £100 PER PARTNER.
No liability no penalty?
Am I wrong in thinking that any penalty applied cannot exceed the tax liability, as there is no liability the £100 penalty cannot be applied. I seem to remember reading that somewhere.
Yes you are wrong...
....
the rule about the penalty not exceeding the liability does not apply to corporation tax.
However, they should cancel the penalty in this case as the company is dormant.
But a trading company will be fined for a late CT600.
You will be able to appeal.....
....and your appeal will be successful if you appeal on the grounds that the company has been dormant throughout the period and therefore has no funds to pay any fine. Send a CT600 with the turnover, profit and tax due boxes filled in with "0.00" at the same time.
Don't bother with the CT600's
Problem with filing the CT600's even with nil figures is that the company will be 'within the system' & penalties will follow automatically. In my opinion much better to send the dormant accccounts to HMIT & point out that the company is not yet within the charge to CT, therefore CT600's are not yet required.