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Where Taxpayers and Advisers Meet

Penalties issued by HMRC on investigation

Yiannis17
Posts: 72
Joined: Wed Aug 06, 2008 3:43 pm

Penalties issued by HMRC on investigation

Postby Yiannis17 » Mon Nov 25, 2019 11:55 am

Morning

I have an case here with a new client who disposed of a fixed asset and made no declaration to HMRC. He has never completed tax returns in the past, and did not seek any professional advise when the disposal happened. HMRC therefore issued a penalty of deliberate as opposed to carelessness which is what we were arguing for. The tax liability has been agreed.

Now HMRC has issued their notice of assessment with a fixed due date of one month from the date of the assessment demanding for the tax otherwise a 5% surcharge will be imposed. Suffice to say interest has already been running here.

My question is, can HMRC do this. The chances of any tax being paid by my client within a few weeks are impossible. Any why the additional 5% surcharge?

pawncob
Posts: 4386
Joined: Wed Aug 06, 2008 4:06 pm
Location: West Sussex

Re: Penalties issued by HMRC on investigation

Postby pawncob » Mon Nov 25, 2019 1:12 pm

The due date is now. They give you 30 days to pay, after which (as with all taxes) a surcharge is applied.
With a pinch of salt take what I say, but don't exceed your RDA

SteLacca
Posts: 447
Joined: Fri Aug 07, 2015 2:17 pm

Re: Penalties issued by HMRC on investigation

Postby SteLacca » Thu Nov 28, 2019 2:12 pm

I'm not clear what assessment you refer to. Given the preamble in your question, is it a penalty assessment or a tax assessment? If the latter, then as pawncob says. If the former, is there an open appeal?


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