I have recently been removing clients from the self-assessment system after the 2012/13 submissions but in some cases HMRC have written back to say that it is too late and the Tax Return run has already been done.
I have written back asking HMRC to withdraw the notice to file under TMA 1970 s.8b saying that they should withdraw it under the new powers they have.
In all of the cases they have refused and are still requiring a Return even though the client doesn’t fall under the criteria for SA any more.
Am I doing something wrong, I don’t understand why HMRC will not cancel the issued self-assessment. I thought nowadays they would be happy to cancel Returns under the new rules if they are not needed?
The clients I am trying to get removed just have minimal PAYE income and nothing else.
Replies (12)
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Telephone
I usually telephone HMRC and most of the time, they will register a nil return and take the client out of SA for the following year.
I find it easier to just ring the agent priority. Go through their questions, they then send the answers to the processing office and in about 3 weeks time I get a letter saying the tax return is no longer required.
Yes I've done one this morning for a 2014 tax return issued for sole trader who retired in 2012/13. His only income in 2013/14 is State Pension and a very small private pension. They were very good, agreed he shouldn't have issued a tax return and said i'll get notification that there's no need to file in 3-4 weeks.
The s8B rules operate
where a return has not already been submitted. Presumably you need to make it clear to them that you are not asking for the 12-13 return already submitted to be withdrawn, just for the client to be removed from the system for the future.
If they have already issued a 13-14 return in the main run on 6/4/14 then as for that to be withdrawn under s8B
You can remove a client's 'notice to complete' by ringing HMRC and notifying them that the client does not meet the Self Assessment criteria. They have to run through a series of questions with you but it is a simple process.
I have done this several times for client's and i have never come up against any problems. In fact I did one as recently as last week.
If you are talking about client's where they have received a notice from HMRC informing them that they are required to complete a tax return for 2013/14, then yes these can be cancelled by making a phone call to the Self Assessment Dept.
I had a client where he fell into Self-Assessment because he was in receipt of rental income that ceased during 2012-13. HMRC didn't pick up the cessation from the return and issued a notice to complete for 2013-14. I rang HMRC informed them that this income ceased in the last tax year and that all other income is taxed through PAYE and they cancelled the notice.
I have done this several times before without any issues at all.
Easier via 'unrepresented' taxpayer
I have found that if I phone up to cancel incorrectly issued returns, I get the 'It's been issued now so it needs to be completed' line.
However, if the client is warned that it has been issued and they phone in saying that they have finished trading and that the cessation date was correctly completed on their last tax return and that they no longer have an accountant, it works a dream.
Executor
This seems to apply to individuals, partnerships and trustees.
Does anyone know if it also applies to personal representatives?