Member Since: 4th Aug 2009
20th Jun 2017
I disagree with Rebecca's last paragraph.
The director had no liability to income tax or CGT so was not obliged to complete a tax return under TMA 1970 S7.
What HMRC want and what the law says are two different things.
Even if the notice to deliver a tax return was received by the director, and if there is no liability to IT or CGT then the accountant should ask HMRC to withdraw the notice under TMA 1970 S8, by virtue of TMA 1970 S8B as there is no tax liability. As long as this is done before the end of the Withdrawal Period (TMA 1970SB(6)(a)(b), generally 2 years from the end of the tax year in which the S8 notice has been given, then HMRC should withdraw the notice to deliver a tax return if they consider no tax is due based on the facts given by the accountant. I have done this successfully many times over the years.
"Unfortunately, the cost of challenging HMRC’s opinion on whether a director should submit a tax return is generally well in excess of the cost of completing the unnecessary tax return."
If no tax return is required under TMA 1970 then the cost of a telephone call to HMRC dedicated agent helpline to cancel the tax return is far less than the cost of setting up a a file, AML procedures, issuing an engagement letter, (if not already done), a 64-8, calls, emails to/from the client, completing a SATR when no tax is due, charging the client for a SATR that is not required by law...
27th Jan 2017
Slightly wrong: The SA Return can be amended up to 12 months from the statutory filing date, not 12 months from the date of submission of the SA return. HMRC's enquiry window is 12 months from the date of submission.
HMRC Manual: SAM124165
Just as HMRC has the right to repair an obvious error or mistake on the return the taxpayer has the right to amend it, within 12 months of the statutory filing date.
For amendment purposes the statutory filing date is 31 January following the end of the tax year, or 3 months from receipt of a Notice to File by the taxpayer (if it’s a late issue), whichever is the later.
The 31 January filing date applies for amendment purposes whether a return was filed on paper or online. So, a taxpayer who files a paper return on time for the year 2007-2008 onwards will have longer to file an amendment than someone who files online. The legislation is at TMA S9ZA.
4th Aug 2016
Nice marketing article, but if you're still "building" the product and "still have a lot of core functionality to implement" then I'll stick with recommending one of the market leaders to my clients, which altough the cogs grind and make noises, it works. However, I admire your ambition. Good luck!
25th Feb 2015
I agree with Paul.
20th Nov 2012
I was going to make the same point re: exempt sales included in turnover for FRV calculations.
4th Sep 2010
4th Sep 2010
A bit of a bland subject. Any CCAB member knows these Ethics. Whether they practice them is another thing. I certainly do.
Taking a firm stance with HMRC is acceptable but only if one is competent and knowledgeable in their argument. Many years ago when I was a partner a client of the senior partner (FCA) had a motor bike through a company and he argued there is no benefit in kind as it's not a motor car. Whilst it was not a motor car, it was an asset available for private use so the 20% rule applied. I discovered his "battle" when I opened the post and had to advise the senior partner to drop it. It was an embarrasment to the practice.
Took an FCCA to sort it.
W Roberts FCCA