Share this content

HMRC Total Lack of Communication

CIS fine and VAT MTD Exemption

Didn't find your answer?

Search AccountingWEB

My client received a late CIS submission £100 penalty. It was my fault as I was ill with flu at the time and also have Parkinsons disease. HMRC deducted this from his PAYE account, and I could not appeal the penallty on line as the option was blocked. THerefore I sent them a letter on 19 February 2019 appealing against the fine, as in addition to my illness there were no sub contractors used that month. I sent the letter in the enclosed HMRC envelope to HMRC, Direct, BX 5 5BD, looks weird I know. So far no reply, I think this is disgraceful.

I also applied for MTD VAT exemption shortly thereafter on grounds ofo my age(69), disability, and only have 1 client over £85000, therefore having to purchase software for me would not be worthwhile. This I did online to HMRC. I received an automated response, but as yet no specific reply.

I am at a loss to know what to do next. Any replies would be much appreciated. Thanks.




Please login or register to join the discussion.

By Matrix
26th Mar 2019 14:57

Sorry to hear about your health.

I would call the CIS helpline and ask for an update on the penalty on the basis you have appealed, repeat the grounds and that it was a nil return and try and get them to cancel it over the phone.

I understand that there is no requirement to comply with MTD while you wait for your exemption application to be processed but others may know more.

Thanks (0)
26th Mar 2019 14:57

I don't think you can get exemption from MTD as an agent, it's on a client by client basis. If your one MTD client doesn't have similar circumstances then I expect they will still have to file. The cost of software, at least initially, is small though, there are providers offering free software that will allow you to file from Excel.

I would be hopeful for your appeal against the one off CIS penalty though, that seems a reasonable definition of extenuating circumstances and provided it's not habitual it would seem harsh of HMRC not to agree.

Thanks (0)
26th Mar 2019 16:04

HMRC will cancel the penalty as no subcontractors were paid, so although you're having to wait, it's a foregone conclusion. From their website:-

Penalties for late returns
You’ll get a penalty if you miss the deadline for filing returns.

The penalty will be cancelled if you let HMRC know that you did not pay any subcontractors that month.

Thanks (0)
26th Mar 2019 16:58

Its your client not you that has to have an exemption from MTD.

Just using some simple bridging. Its really much less of a big deal than HMRC make out.

Thanks (0)
27th Mar 2019 11:04

I tried phoning the CIS helpline today, and they will not discuss over the phone, so I guess I Have to write another letter as I cannot do the appeal on line.

At last managed to get it cancelled on the phone to another extension.

Thanks (0)
Share this content