Catching Up Charge for Barrister

Catching Up Charge for Barrister

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My client who is a praticsing barrister should have changed from a cash basis of accounting to a true and fair basis for the year ended 31st March 2010.

He completed and submitted his SA Return for the year ended 5th April 2010 using the cash basis.

HM Revenue & Customs now say that he has missed the deadline to elect to spread the Catch Up Charge over the next ten years.

HM Revenue & Customs wish to back date the full amount of the Catch up Charge and charge it to the year end 31st March 2010 as oposed to spreading it over the next ten years.

My question is. Can we make a late election to spread the Catch Up Charge over the following ten years.?

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By vince8
29th Mar 2012 11:31

Is this subject to an enquiry?

I know HMRC local compliance business unit in Bradford have been enquiring into returns in respect of catch up charges for Barristers. I take it they have enquired into the return for 2009/10 since it is incorrect? Since the return for that year is still "live" can you not seek to amend it during the enquiry? Not really had much experience in this field of late elections but worth a try.

Last year a new clients 2009 return was enquired into since 2 of the catch up years charges (2003/4 and 2004/5) were completely missed off those years returns. No reason given by old agent and the Inspector taxed them both in 2008/09 on the basis of Para 11(4) Sch 22 FA 2002. The amounts involved were not large but I did argue that 2003/4 and 2004/5 were out of date and that Para 11(4) did not appear to be a sweeping up section in the way he envisaged. To take things to the extreme if the catch up charge was left off for 9 years you could enter it all on the 10th years return. Client paid up since professional costs did not warrant further argument against amount of tax at stake.

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