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What are the likely penalties?

Client hasn't been filing the intermediary return

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Our client hasn't been filing the intermediaries return which we believe they should have.

If they start filing from now, how are HMRC likely to view this?  Are they likely to want the outstanding returns?  It was a genuine error rather than a deliberate act but I guess they all say that!!

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By SXGuy
15th Oct 2018 16:31

From what I gather penalties are automatic and range depending on the number of failed submissions.

The first offence carries £250, the second £500 and the third £1000.

Daily penalties of £600 for continued late filing.

How many haven't been filed? And for what periods?

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16th Oct 2018 07:40

He was told he was providing the service so didn't file any (probably one contract over a year) but to me, he is providing staff as evidenced by the custom of working so I reckon maybe over a year ago he should have been filing.

Is it a throw ourselves on HMRC's mercy?

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By Matrix
to mrshamilton
16th Oct 2018 07:57

Under this contract did your client supply an individual or more than one individual?

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By SXGuy
16th Oct 2018 07:57

You may be lucky. According to hmrc website. If it's been at least 12 months since the missed submission it will be treated as the first offence. So in theory it should only be a. £250 penalty.

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16th Oct 2018 08:01

Apart from the fact that it should have been quarterly from then on, I wonder if that makes a difference. Thank you for your help

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16th Oct 2018 08:01

Apart from the fact that it should have been quarterly from then on, I wonder if that makes a difference. Thank you for your help

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16th Oct 2018 12:09

I had a similar situation with another client earlier this year where, for over a year, I had been telling them (in writing) that I believed they should be filing.

The background was that there were several firms in the chain (many were part of the same large construction group) and it was a case of establishing who our client's end-client was and who in the chain therefore had the responsibility to file.

No one above them in the chain could agree but the one certain fact was that no-one else was submitting an intermediary return so, in the end, I agreed with the client I should phone HMRC and protect his interest rather than rely on finger pointing later.

Spoke to HMRC and explained the situation and we agreed that, to be on the safe side, our client should submit returns and on that understanding HMRC would treat it that returns would be due from that point forward only.

At that stage I provided the client's name!

Peace of mind for all - as long as they remember to file!

I wonder how many returns are submitted per quarter -v- in reality how many should be.... the threat of those backdated penalties probably holds many back and that's when it gets truly scary.

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