HMRC looked into clients tax return for 17/18 and found that an item of carried interest was recorded in the incorrect box (client completed his own tax return for 17/18).
Client is now using our services to complete returns for 18/19 onw.
After going back and forth, HMRC have come to the decision that this is a careless inaccuracy and thus the penalty can be suspended based upon SMART conditions being in place.
We have an issue where HMRC will not accept any conditions suggested by us stating that these are not 'SMART'. Likewise the office cannot think of any conditions we could use either.
Any suggestions on previous experience with similar cases would be appreciated.