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Suspended penalties

Suspended penalties

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HMRC offering to suspend a careless error penalty for 3 months.

Then what, is it payable or written off?

If written off, then that is not really suspension, it is contingent - but then again when did law ever say what it meant!

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By Cathy R
17th Mar 2014 12:13

At the end of the suspension period, if all the conditions have been met, the penalty will then be cancelled.

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By justsotax
17th Mar 2014 12:21

As Cathy R...

says....of course if you screw up in that time then the penalty will be applied...so best course of action is to accept the penalty but then avoid submitting any compliance stuff for the 3 mth period (unless you really have to).

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By Old Greying Accountant
17th Mar 2014 12:31

Seeing as next TR ...

... is the 2014 one seems a bit of a stupid suspension - seems like HMRC being sensible, as it was a minor omission of student loan liability (first year acting, previously did her own, and had not told me).

Still think terminology misleading, 

 

 

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By rjwaberuk
10th Jun 2014 14:36

Means to an End

Just had something similar with a client....3 months suspended (sounds painful!)

Suspect pressure in on HMRC staff to either take a penalty or suspend (HMRC criticised for not having enough of these) - but not to readily accept "innocent error"- common sense applied in the olden days i.e. - "more than just an innocent error (source [student loan] clearly existed and client signed the Return knowing it existed but without ticking the box) - so it borders "neglect". It should not have been missed, but it was - but not worth bothering about - as not persistent neglect amounting to "wilful default"" and still not many non-tax people think of Student Loans when it comes to Tax Returns - so, in the new regime, to can get this signed-off by line manager (probably VAT trained, or at least not old IR background, and will invariably say "careless"),  go for a 3 month "suspended" instead - which everyone will accept - [except it remains on the client's record forever]...................... 

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