Cancelling penalties HMRC dormant accounts

Can they be cancelled?

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Client with dormant company has received penalties for non submision from HMRC. Company will remain dormant as he only purchased it for the name.

He submitted a nil return covering date of incorporation to the date of company accounts (obviously more than 12 months).

If I write and appeal what are my chances of getting them cancelled. He doesnt really want to pay £200 penalties

Co House accs submitted in time and he thought he had to dosame thing to HMRC.

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By Matrix
02nd Aug 2019 18:23

Not much chance since he should not have submitted the (incorrect) return. He should have asked the notice to file to be cancelled given the company had not yet started trading.

I would ask for the incorrect return to be withdrawn (they can cancel it in their system) and ask for the notice to file to be cancelled together with the penalties. Which or may not be successful depending on who you speak to.

I would charge £200 though!

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Jerome lane stewart and co
By Jerome Lane
03rd Aug 2019 05:27

It is likely HMRC will accept an appeal and cancel the penalty where company dormant. Otherwise change the company name and let it dissolve, registering another ltd co or LLP to protect the name. A lot of hassle to save £200! It’s wise to let HMRC know a company is dormant soon after incorporation to prevent exactly this. Good luck!

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By jon_griffey
03rd Aug 2019 14:08

On the basis that the company is not within the charge to corporation tax a return should not have been filed. I would expect an appeal would be successful. Should have sent in a CT41G (dormant).

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