May I have this Community's help please
I know we cannot hide behind the old agent and the client is unlikely to sue them for compensation.
The matter is before the Commissioners in early December. I will not claim 'reasonable excuse' for the non-submission of the Return, just that the amount is unreasonable.
Do the Commissioners have the power to vary the penalty if they agree that HMRC have acted unreasonably? The Clerk is very able (a solicitor) and I fear he will tell me going in that I cannot argue this.
Can anyone quote from similar experiences or name precedents to support me?
My grounds for saying that the penalty is unreasonable
In every other field I know of (CT, Self Assessment etc), HMRC send out regular statements of account. If you fail to file a Return by the first deadline, you get a penalty notice. So when you get the second penalty, you ought to know what you are in for. Besides, the first penalty will have triggered a series of statements of account.
By contrast, for Employers' PAYE they regularly save things until NINE penalties have fallen due - a "nice little earner" I have called it. If there are nine penalties, there should be nine Notices. If there is one notice, there should only be one penalty.
Most interesting is to examine why this is. I believe it is simply technical failings in their systems. We know that there are still 12 PAYE computers which we are told is why we cannot see statements of account online as we do with the other taxes. But that should not prevent Employers from being sent Statements of Account as a matter of course. I consistently find advising Employers about their liabilities the most difficult - like "seeing through a glass darkly".
And then there is the reason for the 9 months' delay. For the three years I have been involved with online P35s, that is about how long we have had to wait for things to process, due to the monstrous cock-ups with a system that makes us file by late May but cannot process without human intervention the other end.
Your comments please - I will tell you how we get on before the Commissioners. I think there is trouble ahead with CIS so this may be a useful topic for debate.
- Partially exempt? 110 3
- OBK 313 12
- Proof of Delivery 188 7
- Mileage claim 158 7
- Auto-Enrolment 3,579 172
- What is 'an asset' for A/A+B CGT? 69 3
- Difference of Sales Invoices and Bank receipts for Sales 323 8
- VAT on converted property having opted to tax 222 9
- Property expense - legal fees 141 3
- Research expenses for authors 270 6
- Investor exit 80 1
- Tax question about small group and how to set up 127 3
- Place of Supply or these two contracts walk into a German Bar 239 4
- Accounting for a VAT Group 122 3
- Xero (another cloud system) and your year end accounts file 138 2
- NIC thresholds - two employments 1,703 25
- Twenty signs your practice is bad at tax 416 4
- Any Scottish members out there? 15,767 588
- Rental Income Tax Planning 137 2
- What type of Trust? 103 1
- Best way to take money from a business if you have unlimited EIS allowances? 510
- Skandia using wrong address 459
- Does anyone use PS Financials accounting software out there? 266
- FHL, period of grace and Entrepreneur's relief 246
- Employee rewards 245
- Legislation access for part-time sole practitioner? 214
- EPS Analysis - Change to EURO 203
- Rental Property W&T And Equipment 197
- Gift of reversion and lease into trust by two different people - later PPR 187
- Etax Australian 158