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Where Taxpayers and Advisers Meet


Posts: 36
Joined: Thu Mar 19, 2015 12:31 pm

Re: Disclosure

Postby DCF » Sun Nov 08, 2015 9:36 am

The fixed penalties are for late filing. These are not tax geared. There are fixed surcharges for late paid tax. Is the amount involved significant?

Posts: 39
Joined: Wed Aug 06, 2008 3:42 pm

Re: Disclosure

Postby vector » Sun Nov 08, 2015 11:10 am

I have a general understanding of the situation.
The OP s englush language skills are limited. Early years no returns and from rough calculations in my head - losses. I read up that in 2010 the penalty regime changed. My understanding of earlier years it was a £100 fine ?

Posts: 3297
Joined: Sat Feb 01, 2014 3:26 pm

Re: Disclosure

Postby bd6759 » Sun Nov 08, 2015 12:14 pm

If HMRC did not ask for a tax return to be completed, there can be no fixed penalties for late filing. A tax return can only be late if it has a filing date. but the filing date depends on the date notice was given. No notice to file: no late return.

Where notice to file has not been given by HMRC, it is your responsibility to contact them and tell them if you need to pay tax. It you do not do so, it is called a "failure to notify." The rules changed on 1 April 2010. Read FS11 for detail of the penalties that can be charged. ... _10_15.pdf

For 2008-09 and earlier the old rules applied. The penalty was a maximum of 100% and calculated according the guidance given in FS15 ... _10_15.pdf

Where a tax return as been submitted, but is wrong because it contains errors and/or omissions, the penalty rules in FS15 apply up to and including 2007-08 and the rules explained in FS7a apply afterwards. ... _10_15.pdf

Posts: 36
Joined: Thu Mar 19, 2015 12:31 pm

Re: Disclosure

Postby DCF » Mon Nov 09, 2015 9:03 am

If the amounts are significant a disclosure facility might be the better route.

Ian McTernan CTA
Posts: 1232
Joined: Wed Aug 06, 2008 3:02 pm
Location: Bedford

Re: Disclosure

Postby Ian McTernan CTA » Thu Dec 03, 2015 12:10 pm

Here's a typical problem. I deal with voluntary disclosures and enquiries and even take these on from other firms (or advise, as required).

The biggest mistake anyone makes is assuming they don't need help BEFORE they make the declaration, end up in a big mess, and then seek advice- by which time it may be way too late.

My advice is always seek proper specialist investigation/disclosure/whatever advice before any contact with HMRC whatsoever.

Presentation of the facts (whether by letter or disclosure facility or by Tax Return, etc) is key in these cases- the level of penalties can end up way higher where the taxpayer says to HMRC 'yeah I couldn't give a stuff and thought I could get away with it' whereas the facts are he/she suffers from Tourets syndrome, wife/husband left, deaths in family, etc and penalties can be negotiated down.

Losses in some years can also play an important part in property cases (more likely in earlier years and when interest rates were higher)- HMRC might cherry pick and say 'last three years' as they can see profits for those years and losses prior to that.

Not declaring isn't an option (well, it is, but not a legal one, and usually you end up worse off in the end).
McTernan Associates Ltd
Chartered Tax Advisers
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