have a new client - simple SA return or so it seems!
Client was employed and has never had any income to declare under SA or need to register
She's had a P800 underpaid tax notice for 2010/11 and because the underpayment hasnt been paid HMRC have registered her for SA for 2010/11 in June 2013
Client didn't understand why she was issued a return and ignored
She's now been hit with £1300 late filing penalties
never seen this situation before, what grounds for appeal do we have?
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Yes we have had one similar
Yes we have had one similiar but for a number of years tax returns. We have appealed on the basis that the returns should never have been issued in the first place, as Paye case. By filing under SA HMRC made it even worse as then tried to collect double the tax !
Simply HMRC have caused there own problems. Stand your ground and suspect they will eventually back down, follow there complaints procedure if need be to the adjudicators office good luck
Me too
I don't know why clients ignore letters from HMRC, especially when they have an accountant.
My client did at least get in touch when the penalty was only £100. I had to submit a tax return, for PAYE only, as they insisted it could not be cancelled, but they they then cancelled the penalty without argument.
In this case a notice to deliver a tax return has been issued wrongly. If that notice is withdrawn no penalty applies! The amended (by FA/13) s.8B TMA/70 states that before the end of the withdrawal period (which is two years beginning with the end of the tax year) the taxpayer may request HMRC to withdraw the notice. For the tax year 2010/11 the withdrawal period has ended on 05 April 2013. However, given that the notice was issued in June 2013 I would think that it's worth requesting the withdrawal of the notice.