Interim 2013 Tax Returns submitted as NIL

Interim 2013 Tax Returns submitted as NIL

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Dear all

Our accounting firm completes self assessment tax returns. We have come across a few cases where we have not received full information from our clients in order to submit their 2013 tax return. One of the reasons for this is because they requested their bank statements which can take quite a long time to get. Another reason is because their receipts are in storage/spread across different places and they are finding it hard to retrieve the same.  

Therefore, by the end of January 2014 we may not be able to submit an accurate tax return. We were planning to submit NIL returns for each of these clients ie showing nil income and nil expenses instead of making estimates under each category of income & expense. We would then make a note in the submission to the tax office that we are still waiting for further information from our client and will resubmit the accounts once we have received it. This way our client avoids the penalties kicking in for late submission of the tax returns.

Has anyone followed this type of procedure? If yes, what was the tax office’s reaction to this?

I will be most obliged to hear the experiences and views of other users.

Replies (5)

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By ACDWebb
04th Dec 2013 09:38

They have had since 5 April 2013

SURELY that is enough time!?

HMRC would be well within their rights to reject the returns as incomplete, so you will be back where you started.

A return with the odd provisional figure based on a reasonable estimate and corrected ASAP should be OK, but a nil return? No. That cannot possibly meet the requirements of s8 TMA

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By johngroganjga
04th Dec 2013 09:57

Agree with the above.  Except

Agree with the above.  Except in cases where £Nil is in fact a reasonably considered best estimate based on all the available information, including £Nil as an estimate as a matter of policy when you have not managed to complete the return on time would not work - certainly it should not as it is an abuse of the system.

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By halblackburn
04th Dec 2013 15:54

Don't do it

IRIS personal tax software warns that NIL tax returns are at risk of rejection by HMRC if transmitted electronically.

A problem you haven't mentioned is getting the taxpayer to approve/sign a NIL tax return when they (presumably) know it is not "correct and complete to the best of their knowledge and belief".

If details are in short supply a better tactic is to recycle last year's figures, tick the provisional figures box, and make sure there is no request for excess payments to be repaid.  This ensures HMRC keeps hold of any 2013 payments on account, but at the cost of similar payments being required in 2014.  Such a provisional tax return still needs to be approved/signed by the taxpayer before transmission to HMRC.

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By ACDWebb
04th Dec 2013 16:28

Whose fault is it that the return is late?
Yours, because the client gave you the info and you did nothing with it - not on the face of it; orThe Client's because they were too busy to find & provide the information - sounds more like it.

Jumping through hoops to try to prevent a penalty they in all probability deserve is just creating a rod for your back next year. They'll know you'll do it so they won't bother to provide the details in good time.

BAH...HUMBUG!!

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