Client never did a 2010/11 tax return
A client came to me after not paying any tax for 18+ months, a limited company contractor. He joined me after 31 Jan 12. His Ltd has a year end of June.
He took loads of money out since setting the company up (ignoring the CT bill and everything else). My plan was to date dividends to May 2011 so that they fell into the 11/12 tax year (money withdrawn being a DL up until that point). The problem then though is that there are effectively two years of dividends going through in 11/12 so a higher proportion of them fall into the 32.5%/25% threshold boosting his income tax bill.
What would happen if I was to phone up HMRC and say sorry client didn't realise he had to register as self employed, he was never asked to submit a 10/11 tax return but should have? Interest + late filing penalty + potentially not registering as self employed?
- Rollover relief - No new asset purchased 269 4
- Business lending another business money (UK) 166 5
- Termination Payment 329 13
- Signed accounts for bank 382 8
- flat rate scheme 2,128 40
- How can a childcare facility mitigate vat 80 1
- Landing clients 516 16
- Opening a Quick books file 178 2
- What are my legal responsibilities 498 15
- P11D Benefits - Accountancy fee for Directors personal tax 268 2
- cash the returned VAT cheque 232 1
- Remote subcontractors - due diligence 251 1
- Confict of Interest 351 1
- dividend date - whose income is it? 276 4
- Rental business through company without owning the property? 355 5
- P11d query 291 5
- Rental expenses 135 1
- Intercompany Payroll Journals 172 5
- No more tax returns... 1,578 13
- How much state pension will client lose out if drops salary 445 6