It appears I have screwed up an filed a paper partnership tax return in December 13 when it should have been in by October 13. There are 3 partners so I now face a £400. Mea Culpa. However, as I understand it to be able to file a partnership tax return online I need to purchase third party software - HMRC software does not allow for submission of partnership tax returns. Is that correct? In which case it does seem a bit unfair to pay £400 for someone at HMRC to enter this info into a computer - which is what they would have done had it been received 2 months earlier anyway. Am I way off track? Has anyone successfully appealed this penalty? I cannot expect my clients to pay it. Thank you
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basics
You seemed unaware that a penalty would be due until it was issued and you do not have any software to file returns online.????????
If I was you client, I would expect you to pay the fine and then I would be changing accountants as this is very basic knowledge for anyone in practice.
I cannot think of any 'reasonable excuse'? but I do agree that it is unfair that HMRC do not have partnership return software. Perhaps it's worth an appeal on that basis in that you intended to submit it online but only became aware that you could not use HMRC software after the paper deadline date.
Pay & apologise
Appeal will come to nothing - the deadlines and filing requirements are there for all to see.
Smooth it over with your clients before you lose them.
Andica or some other file-only service would've been your solution in Dec.
I'd love to say these things happen but they really shouldn't i'm afraid so take it on the chin and mop up asap.
Look on the bright side
Unless I have missed something, if there are 3 partners, the total penalty is £300, not £400.
not quite right here
Unless I am wrong, the rule is that the penalty is "per return" so
3 partners plus the partnership return = £ 100 * 4 = £ 400?
are you including the partners' personal tax returns?
Unless I am wrong, the rule is that the penalty is "per return" so
3 partners plus the partnership return = £ 100 * 4 = £ 400?
are you including the partners' personal tax returns? If you are, the penalty would be £600; £300 for the partnership (£100 per partner) plus £100 each for personal tax returns
You are wrong
The partnership penalty is per return. It is just that the per return penalty is £100 for each partner of the partnership. The partnership has no separate legal status for tax purposes (even if it is an LLP) so the per return penalties are levied on the partners themselves. 3 partners = 3 x £100 for this single return.Unless I am wrong, the rule is that the penalty is "per return" so
3 partners plus the partnership return = £ 100 * 4 = £ 400?
As has been pointed out, they would have £100 penalties each if their individual returns were late. This seems unlikely in the circumstances. The partnership return was ready to file in December but the OP was unable to file it online. The personal returns were presumably ready at the same time, and the OP was in a position to file those online.
.
It is £100 per partner as Euan has said, so £300.
Edited - original comment would have applied if you hadn't filed anything.
In future submit by post a paper partnership tax return with estimated figures well before October (signed by the relevant partner). When the final figures are available submit by post an amended paper partnership return.
Of course the trouble with that is
HMRC would be well within their rights to not accept the estimated return as not being a correct return, so you would be back where you startedIn future submit by post a paper partnership tax return with estimated figures well before October (signed by the relevant partner). When the final figures are available submit by post an amended paper partnership return.
Nominated partner
System seems very unfair. A nominated partner has to be chosen and it is they who signs the Return. In a fair system, surely it should just be the nominated partner that receives the one and only penalty. Sounds like just another money making scheme for HMRC.
Or buy the software
Andica would have charged you just £14.95 + VAT for the software for one partnership tax return. That's what we did to file a Trust tax return at the last minute, but we had to pay them all of £19.75 + VAT!