New client has registered with me showing a P800 for 10/11 with £5K due as BR code applied for most of the year whilst client was actually a 40% taxpayer. Client ignored the P800 and an SA return was then issued for 10/11.Do we have grounds for asking for the penalties (now £1300) for late submission of the SA return for 10/11 (issued September 13) to be cancelled? The SA return has now been submitted but there was no additional information or income to declare and therefore the P800 was correct all along. The SA calculation comes to exactly the same figure as the P800.Any advice please on appealing the £1300 penalties on the basis that the SA return was unnecessary?
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COMPLAIN AND GET THE CLIENT TO SIGN AND SEND THE LETTER
hmrc are generally not receptive to agents unless you are sharpened up and can quote the refernce/basis/case against a p800 AS well as a self assessment registration.
a P800 is issued when hmrc presumes the taxpayer is NOT sa registered, and wants tax under PAYE.
a few years ago even self assessment cases were being issued with p800s, for pensioners etc. due to a failure in the NIRS2 hmrc/nico system.
one dept of HMRC has issued a p800, and another has registered your taxpayer for SA(they may not have been talking to each other), if your client was registered by HMRC under SA)
if he/she registered for SA himself, or if anyone filed the 10/11 SA return issued sept 2013-after filing the return you dont have much grounds to appeal against the SA registration, which would be grounds for appeal against the now onerous 100/mth (minimum) penalties.
so get your client to write a stinking letter to HMRC saying he should not have been registered for SA by HMRC as his tax had already been assessed prior to registration on the P800 assessment.
you then raise the issue with the AAM, seperately- and wont get "fobbed off" by HMRC "customer service" staff who have no technical knowledge
Might be difficult
The SA return was issued, as you have stated, because your client ignored the P800. HMRC are unable to enforce debt collection on P800's and therefore issue the SA return to crystallise the debt and get it paid. The fact that your client ignored it is really his problem, not theirs. He should have sought your advice on receipt of the first penalty notice