Justin Bryant wrote:
HMRC need to tell you the legislative justification for this purported 4 year time limit, as in the absence of a discovery assessment, determination or closure notice etc., I am not aware of any such SA100 filing time limit following the issue by HMRC of a notice to file.
TMA S8B(6)(b) may provide a way out.
Thanks, I'll try that.
Justin Bryant wrote:
Can't she notify HMRC of some (small?) undisclosed liability for that year so that HMRC then have to send her a notice to file a tax return. From memory the FTN penalties are tax geared and the late filing penalties from that year may be less than the POAs. (If she was sent a 2012/13 notice to file then I can't see how a 2012/13 tax return she sends HMRC can be rejected as being out of time in the absence of a CN or DA etc.)
That may be a rubbish suggestion however and you would need to check all that.
Thanks, and yes she was sent a Notice to File (presumably on 6 April 2013), but HMRC will not process if it is over 4 years late.
Was there absolutely no income other than paye in 12/13?
I don't have expert knowledge in the area of POAs but has the question been put to hmrc that your client was in employment in that year and so POAs would have beeen refunded? Ask exactly where payments on account will be allocated since there were no other taxable income?
It seems ludicrous to me that they can demand POAs for a year in which they are being told the only income was taxed at source.
Thanks, and I agree, it does seem ludicrous. But from the legislation this is the position the client finds herself in. HMRC won't process her 2012/13 Tax Return (which would assess the correct liability) because it is out of date. Special Relief won't apply because HMRC did not issue a Determination. The POA's cannot be reduced (on a back-dated basis). Hence, she's stuck with the POA's.
OK, I see, thanks for the responses.
So, S223(3) deems the property as being occupied as a residence, thus there are deemed to be two properties occupied simultaneously (they don't need to be owned, merely occupied as a residence), thus an election under S222(5) is possible. And so actual occupation is not necessary. ESCD21 allows a late election in the case, for example, of someone who doesn't know if they'll be moving back in after their return to the UK (and thus doesn't know if S223(3) will apply).
Surely that election only applies if he owned more than one residence?
You'd have thought so, however...
This makes reference to a) "tenancy" (para 2) and also b) "from which the individual is absent" (para 2). So I assume it means that a) tenancy is "owned" for the purposes of the election, and also that b) an individual doesn't have to have 'as his home'.
As a 'one-man-band' requiring only a single-user licence, the cost to me will be very reasonable, particularly if the Practice Management Software comes as part of the package at no extra cost. Waiting in anticipation for some news on this.
Collaboration seems a sensible way to develop it. Have looked at AM too.
Have been researching this point for a client of mine. The temporary non resident rules now apply to, amongst other sources of income, participator dividends from UK close companies. Except those which relate to trade profits arising in the period of temporary non-residence, so it follows that dividends relating to pre-UK departure trade profits will be taxable in the year of return. See RDR3, section 6, and see what you think.
Doh and damn...thanks anyway.