tax return due for repayment

lorraine

Hi All, I have sent off for a 64-8 to file clients tax retunr, client is cis and expected a refund, what would happen if the tax retrn was filed late? would they get the £100 fine still??????

sloshed

The penalty is £100 or the amount of tax due if it is less than £100. So if your client is due a refund they will have no penalty.

lorraine

sloshed wrote: »

The penalty is £100 or the amount of tax due if it is less than £100. So if your client is due a refund they will have no penalty.

thanks slosh im currently awaiting 64-8 to be posted to the client, may have to buy software especially to enable me to file with out it. I am wondering should I forfeit the cost or would you forward on to the client??????????????????

thank you in advance....

T.C.

Yes, I agree, but I have read somewhere that this is to change and a late return will mean a penalty regardless of what tax is owed.

burg

It still stands for 08/09 returns that fixed penalties will be reduced to the amount of tax outstanding at 31 January 2010. If you are in doubt advise the client to pay what may be owed.

Extract from

SALF208 Manual

Section 93(7)

2.68 The general rule is that the fixed penalties apply to all cases of late delivery, regardless of the tax at stake. However, they cannot exceed the tax liability for the year or the amount outstanding at the filing date. So in cases in where the tax outstanding at the filing date is less than £100 (or £200 as appropriate) the penalties are reduced. (See para 5.37 about partnerships).

Link on HMRC is here http://www.hmrc.gov.uk/manuals/salfmanual/SALF208.htm

This is abolished by the Finance Act 2009 so will not be available in the future (at present possibly 31 January 2011)

lorraine

ok, thank you for your answers.

BIG WAL

Hi Lorraine,

Just seen your post re filing without a 64-8 authorisation. You can still file online using the HMRC software for clients for whom you have not got authorisation.

So no need to buy any software. Just you won't be able to see access their account untill authorisation is complete.

lorraine

ok i will try this! thank you!