Member Since: 1st May 2019
19th May 2021
C J EYRE wrote:
Great to read your article. Nice to see you have taken and developed my suggestions about changing a year end to reduce a tax liability because of SEISS.to you in response to your article on 27 April.
There still appears to be some doubting Thomas about this method, as there was to my original reply.
Personally I have already submitted one Tax Return using this method. I am still waiting to see if the Revenue are going to challenge it. However, they appear to have processed the Tax Return at this stage without any problems
They still have plenty of time to open an enquiry, processing the return as submitted doesn't mean it won't happen several months from now.
27th Mar 2020
Do we know whether the calculation of SE profits will be net of any CAs/AIA? I assume HMRC will work on the taxable SE incoem for each year, but just wondered
The consensus seems to be that it is the taxable profit i.e. after all expenses, CA's etc etc. Presumably the figure that is used within the SA302 calculation.
14th Feb 2020
Interestingly I have had a PA302 Simple Assessment (S59BA TMA 70) today for 2017/18 for a client. It is demanding £62.10 - goodness knows why - I checked the "Explanation" which said "We have worked out you have paid too little tax" which would appear to be a statement of the bl*****g obvious. Except that we send in a SA ITR on 17/12/18 with a much higher figure on it!
I suppose I have to appeal and contact the client and who will pay for my time?
It is one or the other, Self Assessment or Simple Assessment. No need to "appeal" anything, you should be able to just ask HMRC to withdraw the PA302 notice as the Self Assessment takes precedence.
The client would have to pay you for your time. If you choose to charge them. But if HMRC have made an error then your client may be able to get that back from HMRC.
Whether there is an error in the context of redress might depend on what you did in the first place. Did you file an unsolicited return or was a return/notice to file issued?
21st Jan 2020
I'd be tempted to try a S8B withdrawal again with an undertaking that the underpayment will be brought into account on the 2019 Return. That should satisfy everyone, and HMRC get their money without the client being unduly penalised.
Why do you think it would be brought into account in the 2018:19 return?
21st Jan 2020
essex accountant wrote:
I have a client who owes £235 from a P800 from 2015-16. She has ignored demands to pay so HMRC issued tax return notices for 2016-17 and 2017-18 in September 2019 (without me knowing as her agent). The client never told me so I have not completed these tax returns and got penalties. She was on PAYE both years and thought understandably that she didn't need to complete them In 2018-19 she commenced a self employment and I have a tax Return ready to file by January 31st. Under this UT decision the tax returns were correctly issued. HMRC say to file the tax returns and appeal the penalties. HMRC won't withdraw the notice to file these tax returns.
All this for a £250-£300 fee!! What a waste of everyone's time. BTW her annual income as a carer is £20,000. Out of principle I will do this Pro Bono as she can't afford to pay me.
How would filing returns for 2016/17 or 2017/18 formalise the tax owed for 2015/16 though?
Sure there isn't a 2015/16 return required? Or there is more to this than the client has told you?
I really don't see what purpose the returns for 2016/17 or 2017/18 are serving if the only tax owed is for 2015/16.
7th Jan 2020
Paying Class 3 voluntary NIC can help those who have a reduced single-tier state pension as a result of contracting out or gaps in their record
Not forgetting the (much cheaper) voluntary Class 2 option now available.
7th Jan 2020
Individuals who reach state pension age from April 2016 need 10 qualifying years to get any state pension and 35 qualifying years to get the maximum pension.
Do they really all need 35 years to get the maximum? Doesn't the transitional protection mean some will get to the maximum with less than 35 years?