A new client came to me with information about his investment property, the profit from which hadn't been declared with HMRC.
After registering for self-assessment we filed tax returns for 2008/09, 2009/10, 2010/11 and 2011/12 and the client paid the tax as calculated.
In the subsequent 2 months he has yet to hear about penalties and interest. Any thoughts on when they should come through and when, if he hears nothing, can he assume there won't be any?
Thanks in advance.
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Same here
Same as above completed and submitted late tax returns back in November. I calculated tax liabilities together with penalties and nominal figure for interest which the client paid. Big credit sat on his SA account as at today's date as penalties and interest yet to be applied, but I'm sure they will appear in due course.
Did you calculate penalties and tell client to pay them with his tax?
Changed practice
After doing something similar for a number of new clients, I found that HMRC were processing old laibilities as the preceding year only (so in circumstances where I was doing the 11/12 return and 2008/09 , 2009/10 and 2010/11 returns the 2009 - 2011 returns were processed as a 2011 liability with minimal to no interest) I stopped telling my clients to pay interest and penalties.