Oh dear, I've had an enquiry from a chap who started his business in April 2015. He has a government gateway account but he hasn't filled in any Self Assessment Tax Returns at all since he started!!!
He must have had the reminders and he said he knew "something" about the end of October. Must be a typical throw it in a box and forget about it syndrome.
He's going to get penalties isn't he? any idea how much before I ring HMRC?
Has he told them he is self employed? Has he had a request for a self assessment?
You understand that can't actually do this work under the terms of your AATQB licence?
But always beware the late ones, as they are often useless at paying for the work you do!
Never ring HMRC for info that you can find online, they pay peanuts....you know the expression!
Never even trust their interpretation of the online stuff neither, as it often conflicts with the law.
There will be a variety of fines, penalties and interest due depending on his circs and his reason for being late. Covering late notification of requirement to file, late filing itself, late payment on account (first and second, although may not be required if he was employed before this s/e), and any late balancing charges (can't remember the date you mentioned and can't see your post now as im posting from my phone, so also sorry for any dreadful typos!!)
You can find the penalty regime via HMRC online.
edited to correct formatting
-- Edited by Cheshire on Thursday 7th of September 2017 07:02:15 PM
__________________
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
Oh dear, I've had an enquiry from a chap who started his business in April 2015. He has a government gateway account but he hasn't filled in any Self Assessment Tax Returns at all since he started!!!
He must have had the reminders and he said he knew "something" about the end of October. Must be a typical throw it in a box and forget about it syndrome.
He's going to get penalties isn't he? any idea how much before I ring HMRC?
Thanks
Hi Karen
Has he definitely registered as self-employed and received notice to file a Tax return?
If he has then he should have filed his return for 2015/2016 by the 31st Jan 2017 and for not doing this he will get an automatic £100 penalty.
if the return is more than 3 months late then daily penalties of £10 per day may be issued up to a maximum of 90 days (£900), if the return is more than 6 months late an additional penalty of £300 or 5% of the tax owed whichever is greater.
So up until now penalties of £1300 could be imposed.
I don't think that HMRC will discuss his case with you unless you have got your client authorisation in place
__________________
Doug
These are only my opinions of how I see things and therefore should not be taken as advice
Has he told them he is self employed? Has he had a request for a self assessment? You understand that can't actually do this work under the terms of your AATQB licence? But always beware the late ones, as they are often useless at paying for the work you do! never ring HMRC for info that you can find online, they pay peanuts....you know the expression! Never even trust their interpretation of the online stuff neither, as it often conflicts with the law. There will be a variety of fines, penalties and interest due depending on his circs and his reason for being late. Covering late notification if requirement to file, late filing itself, late payment on account (first and second, although may not be required if he was employed before this s/e), and any late balancing charges ( can't remember the date you mentioned and can't see your post now as im posting from my phone, so also sorry for any dreadful typos!!) You can find the penalty regime via HMRC online.
Sorry Joanne
Must have been typing while you was posting your reply, please don't tell me off again for jumping in!!
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Doug
These are only my opinions of how I see things and therefore should not be taken as advice
Yes he has registered with hmrc for SA and had notices. Have had a look at hmrc and yes his penalties up to 31 Dec 2017 will be £1300 plus tax he owes plus interest.
Joanne, I won't be doing his end of year stuff cost I'm not licensed for that, but why do you say I can't do the work under the terms of AAT license? I can surely do all the bookkeeping stuff? Thanks
Doug, I won't be discussing with hmrc, will let the accountant do that, thanks for your help.
It's a bit of a mess this one, I'm going to see him next week, so will get all the gory details then.
Hi Karen
Sorry, yes you can do the bookkeeping work, of course. Think it was just the way I read that about ringing HMRC part.
Has he got an Accountant yet? Make sure he does and quickly. You will need his year end date (which he should decide in conjunction with a chat with the new Accountant)
Good luck with number two! Rolling in!
__________________
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
