Hi, I don't think I am going to get all my clients tax returns filed in by the deadline (they brought the paperwork in very late)
I wondered if this is actually allowed or legal) Am I allowed to file a return with estimated figures then a few days later (after the deadline) file an amendment?
Hi
Dare I suggest you take a step back? If they gave you the info too late for you to be able to achieve the deadline, then why are you considering bending (if not breaking) the rules for them. Wouldn't that be against ethics. Although maybe it's allowable ...happy to find out about that one!
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
See this. www.hmrc.gov.uk/manuals/salfmanual/salf206.htm but note 'A penalty for a careless or deliberate inaccuracy in a tax return could be charged if HMRC find there was no good reason for using a provisional figure or the amount was not estimated reasonably.'
Or
I would suggest you sub some of it out now to another firm-there are always firms who will take it on even at this late stage.
-- Edited by Cheshire on Friday 22nd of January 2016 12:57:12 AM
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
You can file provisional returns if the figures used are a "best estimate" and should only be submitted once it is clear that a more accurate figure will not be available before the filing date.
A company I sub-contract for charges a 25% fee for completing tax returns within 8 weeks of the deadline and sends a reminder to its clients in August and October.
If there is unreasonable delay in submitting the correct information, and there is additional tax to pay, HMRC would be able to charge a penalty on the basis that the original estimate was insufficient.
James
-- Edited by JamesNexok on Friday 22nd of January 2016 01:43:55 AM
You can file provisional returns if the figures used are a "best estimate" and should only be submitted once it is clear that a more accurate figure will not be available before the filing date.
A company I sub-contract for charges a 25% fee for completing tax returns within 8 weeks of the deadline and sends a reminder to its clients in August and October.
If there is unreasonable delay in submitting the correct information, and there is additional tax to pay, HMRC would be able to charge a penalty on the basis that the original estimate was insufficient.
James
-- Edited by JamesNexok on Friday 22nd of January 2016 01:43:55 AM
Hi James
welcome to the forum. can you please introduce yoursel....bit about you/qualifications/what you do- bookkeeper, accountant, employed or self employed blur blur blur. Be useful for the other forum user.
Can I ask......re the fee, do you mean an extra 25% of the normal charge?
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Rachel....paragraphs one and two of James response are straight from the link I sent you, as were my words of caution.
I think the words to be careful of are the ones about having no good reason for estimating a return....them being late giving you the paperwork in itself would not be good reason, nor would you being too busy with other work. Them being late submitting the paperwork due to being in hospital eg from 6 April to mid January would be. Of course you would also need to sell the idea to your clients, or just offer to pay any fines if you dont tell them and they are fined (not a good idea!), hence why I suggested you consider the fact they gave you no choice about hitting the deadline in the first place.
-- Edited by Cheshire on Friday 22nd of January 2016 08:21:50 AM
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Thanks Joanne, I did warn everyone months ago and several times that I needed it all in by the end of December to guarantee that it would be filed by the deadline. I just wanted to check of they was a way around it without getting into trouble. Doesn't sound like it's worth this risk just to save £100.
I am an Accountant with 7 years experience, trained by a former HMRC senior tax inspector, now tax consultant and Director of an accountancy practice of which I am part owner.
