HMRC Self Assessment Fines Question

[Amethyst]

Due to various reasons which are personal I didn't get around to returning my self assessment tax return for period ending 5/4/06.

The return would have been a zero return anyway.

I have received fine letters, but am only just dealing with it.

I have written now offering a weekly payment of £2 a week.

Anyway I was wondering how they charge the fines. The total bill is now £210.81

I just looked at the breakdown and the descriptions and amounts are as follows;

SA 1st Penalty for Late return £100.00
Interest to 3/3/8 £7.50
SA 2nd Penalty for Late return £100.00
Interest to 3/3/8 £3.31

Interest accruing per day £0.04


So is that £100 per year for not returning one tax return ?

Mainly my question is am I looking at a further £100 being added in April of this year ?

Also anyone any ideas how HMRC are for accepting nominal weekly payments against these kind of fines ?

[Sapphire]

Re: HMRC Self Assessment Fines Question

Hi Ame its not something that I know a lot about hun to be honest. But I am having a meeting with our Accountant on Tuesday evening and if I get a chance I will ask him, to see if he has any idea.

[enaid]

Re: HMRC Self Assessment Fines Question

Penalties for late tax returns. By Keith Gordon - 28 Feb 2008

[Amethyst]

Re: HMRC Self Assessment Fines Question

thanks sapphy that'd be good if you remember - think you probably have more pressing things to talk about tho :hug:

Cheers for link Nelly - can you make head nor head of it ?

[enaid]

Re: HMRC Self Assessment Fines Question

HM Revenue Customs: Self Assessment: What if I have missed the deadline for filing my return?

Sorry that other was wrong one lol

[Amethyst]

Re: HMRC Self Assessment Fines Question

cool lol. Cheers hun thats brill (I should have looked there really)


Fixed penalties
If your tax return has not been received by 1 February there will be an automatic £100 penalty.
There is a second fixed penalty of another £100 if your tax return is still outstanding six months later -
31 July.
You can appeal against the fixed penalties but you will have to show that you have just cause for missing the deadline.
For more information and a handy chart see 'Key Dates'.





Reduction of fixed penalties
If - when the tax return comes in - the correct amount of tax payable at the due date is less than the fixed penalties, then the penalties will be reduced to the amount of the tax that is due.




????????????????

In the letter I did ask for a new SA form for that year so I can get it filed......so maybe they'll let me off... we live in hope

[enaid]

Re: HMRC Self Assessment Fines Question

You can but try let them know you are under doc whatever can't do any harm imo xxx

[Amy]

Re: HMRC Self Assessment Fines Question

Ame, I'm not sure they will accept such small installments, if they even accept any. I appreciate how difficult it must be, but HMRC won't muck about.

I think this should become a priority to clear as soon as you possibly can.

[TUTTSI]

Re: HMRC Self Assessment Fines Question

Ame, Hubby will be back in ten minutes and he will be able to advise exactly what is to be done he is an Accountant.

xxxxx

[Amethyst]

Re: HMRC Self Assessment Fines Question

Well £2 a week is stetching it to be honest. My housing benefit and co tax beneift still hasnt come through and everythings a bit of a struggle. They can't have what I don't have can they.

Hopefully the 'marital home' lol will be sold in a few months, they can have it all then. Actually i can't wait for that cause all £30k of debt is going to just vanish overnight.........loverly.

[Amethyst]

Re: HMRC Self Assessment Fines Question

Thanks tuttsi xxxxx

[TUTTSI]

Re: HMRC Self Assessment Fines Question

Hi Ame
Hubby can answer your question, but also needs some further info:-

Are you saying that for the year ended 5/4/06 that your total gross income was nil ?

If your income was nil then you ought not be paying penalties at all for that tax year. In terms of penalties how it works is that if you file a tax return late ie 1 day after the deadline date then £100 fine is automatic. If you still do not file that return by the end of a further 6 months then another £100 is added and this can then escalate further if a return is not filed at all. It seems that you incurred a first and 2nd penalty and not having paid these HMRC would be correct in charging interest. However, if the tax due is less than a penalty charged then the penalty is waived. In your case I believe that you should be contacting HMRC at the telephone numver on their letter presumably which would start with 0845.... and speak to them, tell them that you have no income to declare and explain why this is so. They will then explain to you either to write in or submit a nil tax return for that year. Our feeling is that they will ask you eitherwrite in or maybe visit a local tax enquiry centre in order to settle this matter.

Do not offer to make any payment towards the penalties as you are not liable for them. Also, you must explain to them what has happened in the following tax year ended 5th April 2007 as the deadline date for filing that return has expired and you would be into further penalties.

So it is good news nothing to pay!!!

xxxxxxxxxx:kiss:

[Amethyst]

Re: HMRC Self Assessment Fines Question

WOW ! fantastic news thankyou Tuttsi and give your hubby a big :kiss:.

Yes my total gross income was nil - it was the year I kind of lost the plot and the business went tits up so if anything it was a minus figure but I stopped keeping any accounts (I KNOW)

I havent been asked to do a SA since tho.

I will see what they reply to my letter and then call them off the back of that if need be.

THANK YOU xxxxxxxxxxx

[TUTTSI]

Re: HMRC Self Assessment Fines Question

Hi Ame

You are welcome, you have helped loads for us xxxx:kiss:

I will ask hubby when he is arround in the next hour, but in my opinion if the business went into loss the year before, and accounts were prepared to show that position maybe - you would be entitled to a TAX REFUND !!!!

This is just my thoughts as I am not an experienced in these matters....so Ii will get the expert to answer.

xxxxxxx


xxxxx

[TUTTSI]

Re: HMRC Self Assessment Fines Question

Hi Ame

Hubby asks did you pay any tax during the 2005/6 tax year as payments on account in Jan and july 2006. He asks the date when the business ceased. He also asks what happened in the tax year 2004/5(2005 tax return) and did you submit a tax return and pay tax in that year. He is trying to establish a picture as to whether there could be a tax refund.

Also as far as conerned the business was it a sole trader, partnership or Ltd Company.

xxxxxxx