Share this content

Out of date tax returns and determinations

Out of date tax returns and determinations

Didn't find your answer?

Client has failed to file tax returns since the year 05/04/2006 due to various issues in that year that led to him burying his head in the sand for the next 9 years.

We have completed and filed 2013, 2014 and 2015.

There have been determinations for 2009 and prior, and we're now too late to file a return to replace them.

My question is therefore in respect of the returns for 2010, 2011 and 2012.  There are refunds due for 2011 and 2012 with a large capital loss to carry forward, and there's likely just a small liability for 2010.

I believe HMRC should still accept these given the guidance here: https://www.gov.uk/government/publications/income-tax-time-limits-for-se...

But what happens if not?  Guidance states that Determinations and penalties would be considered, but he's already had maximum penalties for each year and we're now past the Determination time limit.  From what I can see it could just be Discovery, and they may refuse to process the refunds?

Any advice appreciated, none of the material I've found deals with such late issues!

Replies (8)

Please login or register to join the discussion.

avatar
By cparker87
15th Apr 2016 20:15

notice to file?
Were notices to file issued?

Search for the Higgs case

Thanks (0)
By JCresswellTax
16th Apr 2016 10:21

If they wont accept
You have to condsider 'special relief' for those out of time years.

Thanks (0)
Replying to Beach Accountancy:
avatar
By lechiffre
19th Apr 2016 12:13

Don't think HMRC will accept Special Relief

For Special Relief to apply I think the taxpayers affairs have to be up to date at the time...

The legislation details three conditions that must be met to ensure a valid claim:

It would be unconscionable for the Commissioners to seek to recover the amount (or withhold repayment if already paid);The person’s affairs (as respect matters concerning the Commissioners) are otherwise up to date or arrangements have been put in place to bring them up to date; andThe appellant has not made a previous claim for special relief

 

Thanks (0)
By Tim Vane
16th Apr 2016 16:08

I think you are on a hiding to nothing trying to get movement on those.

Plus your capital losses are out of time to claim even if you could submit a return, so that's almost certainly a goner.

Thanks (0)
By Clare
16th Apr 2016 17:51

There were notices to file in all years, but he likely didn't see all of them as he moved house. He would have been aware of the necessity though.

My concern is not so much the years he has refunds for, he may simply lose the money but in fairness that's his own fault. My concern is that there may be tax owing for the earliest year - what happens if they don't accept it? Or do we simply assume that they will given that there is tax due?

In a more general curiosity sense - what happens if there is tax due, a notice to file issued but no return ever filed and no determination issued. The return is out of date after 4 years, so what happens then....? All guidance tells me about special relief for refunds but nothing states what happens if there's a liability. Is it purely a discovery issue from then on......? A criminal offence...?

Thanks (0)
avatar
By Lambdenman
19th Apr 2016 12:15

Out of date returns - another case

This query reminds me that I have an intended client who hasn't filed any return ever, going back umpteen years. He's currently sweating it out, but will come in eventually.

If he declares himself, is it likely that he'll escape penalties?

And how do I deal with the oldest years - past the six years we keep - for which we have no software? Ask for paper returns and fill them in by hand?

Be grateful for comments.

 

 

 

Thanks (0)
avatar
By lechiffre
20th Apr 2016 12:25

He must file old o/s tax returns to be eligible for Special Relief.

Very old returns will have to be filed on paper.

Thanks (0)
By Clare
20th Apr 2016 12:33

The Special Relief and refund/losses part is fine.

The issue is the prior year which is now out of date, where no determination was issued, and for which tax may be payable.

Thanks (0)
Share this content