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Where Taxpayers and Advisers Meet

Self assesment late registration penalties

DAVIDS3511
Posts: 3
Joined: Wed Jun 15, 2011 7:33 pm

Self assesment late registration penalties

Postby DAVIDS3511 » Fri Feb 01, 2019 1:07 pm

Hi All, asking for a friend who is up the wall with worry. She is part time employed and is also a director of her husbands small limited company. From what I can gather he is registered and has no issues with self assessment. She gets a wage from her employment (15k) and takes a dividend from the company. She has never registered for self assessment and has never been asked to. Her accountant always told her if you don't owe any tax and they don't ask then you don't have to.

Now, she has registered this year because she will be receiving 8k. HMRC requested tax returns for 15/16 and 16/17. 15/16 had £0 due and 16/17 had £225 due. However, they are now demanding for nearly 4k in penalties and interest. She admits she should have registered last year with an 8k dividend and is resigned to paying the £1600 fine, £225 tax and interest. Is there anything she can do about 15/16. 4k in penalties seems outrageous for £225 in tax especially when 2k relates to a year where no tax was due.

Thanks for any help.

wamstax
Posts: 1869
Joined: Wed Aug 06, 2008 3:39 pm
Location: Operate Nationally but based in Aberdeen
Contact:

Re: Self assesment late registration penalties

Postby wamstax » Fri Feb 01, 2019 5:37 pm

She needs to take advice and determine if she was previously asked to file a return and if not under what legislation are they seeking to penalise her with a fine. Merely being a director does not require registration for SA and this needs careful consideration. Also possibility of reasonable excuse for year where no tax.

Too many possibilities to say yeah or nay and she needs to engage experienced professional on one to one basis to get whatever is possible out of it
regards and hope this helps
http://www.wamstaxltd.com
Operates Nationally with competitive costs
and email and phone contact can be obtained from website

bd6759
Posts: 3109
Joined: Sat Feb 01, 2014 3:26 pm

Re: Self assesment late registration penalties

Postby bd6759 » Fri Feb 01, 2019 8:11 pm

First you must establish and tell us exactly what the penalties are for. There are no penalties for late registration. There can be penalties for failure to notify, but they cannot exceed the tax due, and normally cannot exceed 30% of the tax due.

If she had been given a notice to file, there are late filing penalties. She must have ignored the notices. As mentioned, a good advisor should be succesful in an appeal.

DAVIDS3511
Posts: 3
Joined: Wed Jun 15, 2011 7:33 pm

Re: Self assesment late registration penalties

Postby DAVIDS3511 » Sat Feb 02, 2019 7:52 pm

First you must establish and tell us exactly what the penalties are for. There are no penalties for late registration. There can be penalties for failure to notify, but they cannot exceed the tax due, and normally cannot exceed 30% of the tax due.

If she had been given a notice to file, there are late filing penalties. She must have ignored the notices. As mentioned, a good advisor should be succesful in an appeal.
It'll be a few days before I see them to ask but as far as I know the penalties are for late filing. She is a civil servant, no way she would have ignored a notice.

bd6759
Posts: 3109
Joined: Sat Feb 01, 2014 3:26 pm

Re: Self assesment late registration penalties

Postby bd6759 » Sun Feb 03, 2019 5:22 pm

You said in your opening post that she has an accountant. What he said, is perfectly correct. The tax returns cannot be late if they were sent back within 3 months of being asked to complete them, no matter what year they are for,

As a friend who has no knowledge of this, you should tell her to ask her accountant.


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