I have a client that has not submitted VAT returns for a long time, and has paid very little in determinations. In fact most of the determinations have not been paid.
They are now ready to submit the returns which will show about 35k owing.
My question is, how flexible will HMRC be on the amount of surcharges, can it be negotiated?
Replies (3)
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Depends on the reason for non submission. Generally there is no leeway unless HMRC have made errors
Additional Penalty
There is also a penalty which is assessed when the original assessment understates the actual liability for the period.
Your mitigation will start with your disclosure of the differences - telling, helping, giving - see HMRC Leaflet cc/fs7 which deals with this.
Whether there are other circumstances which should be considered under 'reasonable excuse' or 'special circumstance,' I don't know. IF there are then do mention them, as they will help to further mitigate the penalty.
Read this
https://www.gov.uk/vat-returns/surcharges-and-penalties
I doubt your client will get any reduction from the above.