I am new to business. I do bookeeping and some SA (family and friends mainly)
I did a paper return for a friend last May after he missed the deadline and got lost in the post or at their office(HMRC), not sure, as every time you call you are giving different info on the same question by the staff.
In October they sent out a letter saying he must pay the penalties. I contact them been asked to sent a copy of initial return. I did send it special delivery this time.
I got another letter saying they don't accept copies and we must do an online return and until then all penalties are on hold.Did it online and they replied to the appeal saying that he must pay the penalties as they only received the return in December 2013 (when I did it online).
We request another review of the appeal by another HMRC officer and now got their reply saying that the appeal is not accepted and if we want must go to tribunal.
My client now is holding me responsible for his return not being received by HMRC in the first instance (I posted on his behalf 1st class in the envelope provided by HMRC) and wants me to pay the penalty.
If I must pay it I will make a loss. Can I claim it in my SA - (I operate as self employed)?
I 've read something about carrying back losses than forward.I've been registered selfemployed for a no of years and did my SA all this time but only on my employment.It's only last year when I started to have some selfemployment activity as well. How would this work if previuos years I've been employed?
Please , if I can have some advice from you.