Late self-assessment registration - 3 month window?

Late self-assessment registration - 3 month...

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Hi,

I've got a client that should have registered for self-assessment in 2013/14 and submitted a 2013/14 tax return as they began to receive rental income in August 2013 (tax will be due).  I notified HMRC of this in November 2015 and we intend to submit a tax return for 2013/14 and 2014/15 by 31 January 2016.  I was wondering if they are likely to be fined late submission, only I've seen some conflicting information with some people stating as long as the 2013/14 is filed within 3 months of HMRC issuing a tax return (following us notifying them), no matter how late compared to the original deadline, there will be no fines.

Whereas, it seems they might also be in line for the maximum self-assessment penalties given that the tax return is almost a year late.

I can't find anything in HMRC's manuals to indicate the 3 month rule still applies, perhaps someone could point me towards this?

Many thanks.

Replies (3)

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By cparker87
13th Jan 2016 16:45

It does

Later of 31 January following end of tax year or 3 months from notice to file. They will issue a notice to file following your registration if not already done so. 

HMRC may seek late notification penalties which are tax geared. 

Thanks (1)
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By brynboy
17th Jan 2016 00:50

There is currently a scheme, called the Let Property Campaign with HMRC whereby taxpayers can voluntarily disclose that they have untaxed rental profits. I submitted figures for both 2012/13 and 2013/14, and did so direct with the special department rather than submitting a Tax Return. The scheme enabled me to calculate both interest and penalties, and the client sent final proposal with a cheque. Believe the penalties are less if you go through this scheme.

This department were then supposed to contact the appropriate colleagues to arrange a UTR and for a 14/15 Tax Return to be issued. This was not as well organised as in theory, but the 2014/15 Returns have now been completed, and will be submitted once I meet the client next week.

Have a look to see if this is a better approach for 2012/13, just put Let Property Campaign into your search engine.

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By Gone Sailing
17th Jan 2016 20:01

Scheme confirmed ...

I did 2 new clients this tax year - both 2012/13 to 2014/15 - ordinary employees with properties.

Not a peep from the Penalty dept.

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