Not taking into account any interest that may be due, if you work out the first January that his first return was late, you start with £100. You then have to add £100 for each July and January that has passed since that return.
Then you take the second return and calculate £100 for each January and July that has passed since that return was due..
and then the 3rd, 4th, 5th ,6th and 7th return.
It used to be that if a return was late but there was no liability, there was no fine imposed. As I understand it, they got rid of this last year, and now fine for each 6 months, regardless of whether there was a liability or not. I am not sure if they honour the old rule for the old returns, nowadays... Hopefully someone else will know.
Old rules will apply for old returns so if no tax to pay then you probably can argue down any penalty.
Though if the 2012 return hasnt been submitted you will be looking at something like £1300 penalties for that return even if no liability. £100 for being late after 31 Jan 2013, £900 for being late after 31 july 2013 (£10 per day for 90 days since 30 april 2013), £300 penalty for being late i think after 30 sept 2013.
Oof Mark, the new rules are HARSHHHH!! I had no idea they had changed them to that extend. I had only heard about the "no liability" change. Thanks for pointing that out to me. I don't have many sole trader clients, certainly none that are late, but I will bear that in mind!
All fines and penalties follow the same basic principles related to deliberate / concealed or not as the case may be.
It was a quiet Sunday afternoon and I had nothing better to do.
All the best,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
I have a letter from HMRC thanking me for supplying returns for the years ended 5 April 2007 and 5 April 2008. However they have diced that they will not be taking further action in respect of the information contained in the returns.
This basically means they will not be processing them!
