Just coming to the end of completing two years accounts for a subby. Tax redunds are due but subby owes outstanding penalties. Should I just leave the who to pay refunds to blank or just put his details in and hope that HMRC allocate it to the penalties. Subby is happy for it to be allocated to penalties.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Would be worth giving HMRC a ring also to firstly let them know SA have been submitted and secondly, that refunds due will be used to pay off penalties. Your call will be logged on their system so if you check online at a later stage and your clients penalties have not been contra you will have least your request on their system !!!
He was late with 2011 and 12 and incurred penalties there as well. 2013 was submitted a month late and then nothing for 14 and 15 until I filed them on Tuesday. To be honest I never gave it a thought about appealing the penalties because I thought there had to be a legitimate reason, which I don't think there is in this case?
I have appealed penalties in the past for someone who had only worked self employed a month and didn't realise she needed to do a self assessment, and that was successful.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Have had to do appeals in the past also, but have found that unless the client has a legitimate reason, HMRC are not that helpful. Given that in John`s case these SA are dating back to 2011/2012 it may be difficult. There is on HMRC site somewhere a description of what constitutes a legitimate reason.
