Corporation Tax Penalty Determination - case for an appeal?

Corporation Tax Penalty Determination - case...

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Hi

Client came to me following filing of his accounts last month & I was just wondering if I have I a case for appealing a £200 determination received by the client in the post today?

Background is:

 - Company incorporated 25/01/13

 - Trade commenced 14/05/13

 - ARD date extended from 31/01/14 to 31/03/14 in January 2014

Letter states a notice was issued to deliver a CT Return on 23/02/14 (client says he received it but didn't pass onto his accountant) specifying the periods 25/01/13 to 24/01/14 stating a £200 penalty. 2nd page also states that an assumption was made that a return was required for P/E 14/05/13 due by 31/05/14.

Any advice would be warmly received.

Thanks in advance

Replies (4)

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Portia profile image
By Portia Nina Levin
17th Nov 2014 14:39

Waiver?

Ordinarily, the filing date for an accounting period that falls within a longer period of accounts (of not more than 18 months), is 12 months after the end of the period of accounts.

However, that only applies to accounting periods. Your accounting period here is 14/05/13 to 31/03/14.

In response to a notice to file a return, specifying the period 25/01/13 to 24/04/14 (in which no accounting periods end), a return is required for the period 25/01/13 to 13/05/13 (which is not an accounting period). Not being an accounting period, that return needed to be filed by 13/05/14.

Historically, HMRC have waived penalties in this sort of situation, but I do not believe there are grounds for appeal, as it is technically correctly issued.

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Replying to mrme89:
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By Sandi12
17th Nov 2014 15:13

Thanks for the swift & detailed reply Nina.

What would you recommend in this instance then? Pay the £200 (as the return was delivered after 3 months of the "filing date") due by 11/12/14 or try & argue the case??

Not that I'm sure it matters but there was no CT due in any of the two periods the returns were filed for (23/1/13 to 14/5/13 & 15/5/13 to 31/3/14) as client had suffered losses.

Thanks

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Portia profile image
By Portia Nina Levin
17th Nov 2014 15:22

Write to them

Tell them that the penalty relates to a return for a period when the company was dormant, that the company has since been loss making, and ask them to waive the penalty.

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By Sandi12
17th Nov 2014 15:27

Many thanks Nina

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