I have a client who had partnership income and sole trade income in 2006/2007. HMRC issued a notice under Section 12AC (1) and (6) TMA 1970 ref the partnership, all on time, but also issed a Section 9A TMA 1970 notice ref sole trade but have accepted that it was invalid as it was issued too late to have been received within the statutory date. Both related to losses and a tax refund was witheld.
All well and good but they had in the interim issued an assessment, which they called a discovery assesment using Section 29 TMA 1970 as authority as time was running out, thus reducing the overpayment from £51K to £22k (and come up with tax due of £29K by taking a negative from a negative and getting a positive) by disallowing the sole trade loss. The partnership loss stayed intact.
The partnership matter is now settled and a figure of tax is due by way of a settlement payment to be lade separately.
So, where do we stand regading the sole trade?
I am of opinion that the invalid Section 9A invalidates the asessment so the full £51K overpayment should now be released. There are also losses allocted to earlier years which should now be actioned resulting in a additional tax refund.
Am I right or will HMRC get an out via the Section 12AC (6)?
Was it really a "discovery" assessment seing all info was on the return itself?
- Flat Rate VAT 141 1
- SA302 376 8
- How to prove income for a mortgage if you have no SA302s 477 6
- Suppliers for Online Card Payments? 399 8
- Can anybody help withe the RTI end of year process? 441 5
- Anyone Heard of This Outfit? 414 2
- Tax Return Member LLP 194 2
- Purchase of shares and goodwill 200 5
- How will auto enrolment affect accountants? 1,518 41
- Directors Remunerations and Employees on CT600 145 1
- How can I tell what returns are outstanding on HMRC online? 253 3
- Practice management - that old chestnut....... 1,249 19
- Go Cardless 405 10
- Self assessment tax arrears 358 3
- Mehjoo 350 2
- Amazon Fees, Sage VAT/Tax code T20? 205 4
- US Employment Income - Double Tax Treaty 305 13
- Bringing money to Uk 316 4
- Capital Allowances on Furnished Holiday Lets Business 227 4
- Hmrc software 278 3
- Xtuple 527
- Qtac payroll for bureau 359
- Confused - Professional Association a Mutual trader, or not? 303
- Industrial & Provident Societies 296
- Data transfer from Sage Line 50 to VT Transaction+ 241
- Why would HMRC offer to close an investigation by contract settlement 222
- VAT Payable on Expenses for Non-VAT Registered Ltd Co 219
- Domain name sale and limited company 186
- CIS schemes 183
- Investment 161