A contact of another client has come my way. He has always been employed apart from a few months in 16/17 when he had a brief spell as a CIS subcontractor, hated it and went back to employment in another field.
He ignored the requests for a 16/17 tax return as naively thought that tax was being taken from him so didn't need to do one. There is no reasonable excuse I can see.
I have now done the return and a refund is due for the year. I have also done a 17/18 return which is employment only and no tax due.
He currently has £1,300 of late submission penalties issued. The initial £100, the £900 of £10 daily penalties and a £300 6 month penalty.
FA2009, section 55 paragraph 17 (3) refers to where there are two 'tax-geared' penalties they must not exceed 100% of the tax due. So, if he had received both a 6 month and a 12 month penalty, I understand we could have had them reduced to zero under this provision.
Is there any scope to reduce his six month penalty? Or are we stuffed because he has not left it even later and so only has one 'tax-geared' penalty? If there is scope, how do I do this as the standard penalty appeal forms do not seem to fit. If we're stuffed, are we better off waiting to file until after 12 months has passed?!
Any help very much appreciated, I have not had a client submit this late before so it is a first for me and I am struggling to find a definitive answer.