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HMRC - commonsense
don't make me laugh. The only reason why they are waiving the penalties is because they know they would lose in tribunal. Anyhow what gives HMRC the right to "waive" penalties just when they feel like it. If penalties are law then HMRC don't have that right. If not then surely we can also say "we decided not to work that day because it was raining" so we have a reasonable excuse. Time HMRC were taken to task - mind you any more strikes and they might just as well pack it all up and let us REALLY self assess.
HMRC
Well it seems as if HMRC are a law unto themselves. When it comes to penalties here's a good one.
Client has massive tax refund, based on an assessment from 2006-2007 paye, actually more than orginally paid in tax. Client contacts us as obviously a mistake, and doesn't bank the cheque. We contact HMRC regarding the gross error, turns out the figures have been transposed from one system to another. They have now amended theses figures so it created a large outstanding balance, again WRONG...! The client has quite rightly refused to pay this error, so they are now threatening penalties if it remains outstanding. Is this department run by complete idiots?
All HMRC seem to be doing during this recession is being as unreasonable as possible, imposing as many penalites as they can, and making tax inspections time consuming and difficult!
Instead of being glad the population is not sitting on benefits, but getting up and starting a business, they seem determined to scrounge every last penny from the self employed.
Good to know they are behind kick starting the ecomony...!
Please clarify
Does this mean that there will be a £NIL penalty, or NO penalty at all (there is a difference)?
Just heard that too - but nothing on the revenue web site - but thats no surprise !! That would be a help with my stragglers !
If Accountants had a mass walkout on 31st Jan
would our clients be able to claim that as reasonable excuse?
Just don't tell the clients!
A two day extension has got to be good news but those who are going to leave things to the very last minute will continue to do so. I know I'm still going to be filing Returns for the late stragglers at silly o'clock on the 2nd. (and those clients ring me for advice not the HMRC call centres!)
Helpline can't help
I have just spoken to the agents' SA dedicated line. The call centre staff have no knowledge of the alleged 2 day filing penalty and interest waiver. Has anyone seen anything direct from HMRC confirming this ?
oh well
there was a twitter post that prompted me to search to see why and if true. I booked a flight early hours this morning to Amsterdam as a reward for getting past Jan - going on Feb 1st for the day - so if my stragglers are now thinking great 2 extra days they can think again. & Already got work booked in for Feb 2nd. Gotta aim for 31 Jan anyway now!
Surprised
With the huge amount HMRC stands to collect in penalties from all those who file late, surely it is better for them to give in to their staff's demands and keep the original deadline?
Please clarify
It is worth pointing out that we have conflicting reports of what is going on. According to the BBC no fines will be sent out for returns received late on 1-2 Feb. According to the above it sounds like you may be fined but you will have a reasonable excuse. I think the former sounds more plausible because HMRC are trying to avoid loads of appeals clogging up the systems.
More funny is the fact we now see that HMRC can after all change its computers to a penalty date forwards or backwards (as we all knew it could). Which all brings me to You Charter - anyone remember that?
HMRC says:
"We will:
• act within the law and our published guidance"
It would be kind of good to have some guidance PUBLISHED by HMRC on the exact position here given that this story is now two days old.
Virtual Tax Support for accountants: www.rossmartin.co.uk
Sorry - was going to be cynical but found this on their site
26 January 2011
Self Assessment deadline
To make sure our customers are not disadvantaged if they cannot get through to HMRC's call centres on 31 January, we will not impose any late filing penalties for people who file their Self Assessment returns on 1 and 2 February.
The SA deadline remains midnight on 31 January. But HMRC will treat all returns that come in by midnight on 2 February as though they were submitted by 31 January. No customer will have to pay interest on payments due on 31 January that are paid on 1 or 2 February.
Acting Director General Personal Tax, Stephen Banyard, said: “We’ve always been very clear that we want the returns – not the penalties. For that reason, we don’t want anyone who can’t get through for help and advice on 31 January to be disadvantaged in any way.”
The missing link to Marion's post
Not posted in What's new, Agent News, Service issues, etc...but in its press section on 26 Jan 2011.