Late SA Return... yes that's what I thought too :/

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Raging Pineapples
Raging Pineapples Registered Posts: 110 Dedicated contributor 🦉
Hi all,

The perennial problem with foreign family members getting tax around their necks.

My uncle in law (speaks not a word of English) has happily forgotten / been blissfully unaware of the need to file his tax return. So today he showed me the standard 100 pound fine which he's got through the door and of course won't be able to pay. He can't find his tax return either, so my plan of sending it off ASAP to at least stay any future charges has also not worked too well.

What are our options here?

I know you *can* appeal, but what do you say? He didn't file his tax return because he didn't know what it was and neglected to ask any of his children or in-laws about it?

Anyway, the details:

He's self employed, was working supposedly under CIS (except his employer hasn't made any tax payments I believe), but has only made 640 pounds during the whole year. This is his first year self employed, so I'm not entirely surprised that he didn't know what the tax return was.

So what do you think? Is it even worth appealing? If not, how do we get a tax return ASAP to replace the one he's lost?

Thanks anyway, I'm still getting over my sense of shock right now.

Regards, Chris

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  • Anne Boleyn
    Anne Boleyn Registered Posts: 196 Dedicated contributor 🦉
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    Hi
    Why don't you file it online for him, if you have all the information. I believe if he doesn't have any tax to pay then the penalty is reduced to nil but this might have changed.
  • AK002
    AK002 Registered Posts: 2,492 Beyond epic contributor 🧙‍♂️
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    If he's only made £640 in the whole year then it's covered by his personal allowance and he won't have any tax to pay.

    On that basis you can appeal the penalty because the penalty cannot exceed the amount of tax due.

    I.e. if he only had tax liability of £10 they couldn't give him a penalty of £100...

    I'm sure that's the way it works.......(someone else will confirm)
  • burg
    burg Registered, Moderator Posts: 1,441 mod
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    Yes the SA penalty is limited to the tax outstanding at 31 January following the tax year. Although this is the last year that this will apply so don't plan on this for next year!

    Appeal on this basis.

    I would get registered for online filing and get it sent in ASAP.
    Regards,

    Burg
  • A-Vic
    A-Vic Registered Posts: 6,970 Beyond epic contributor 🧙‍♂️
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    AK002 wrote: »
    If he's only made £640 in the whole year then it's covered by his personal allowance and he won't have any tax to pay.

    On that basis you can appeal the penalty because the penalty cannot exceed the amount of tax due.

    I.e. if he only had tax liability of £10 they couldn't give him a penalty of £100...

    I'm sure that's the way it works.......(someone else will confirm)

    Agreed ive sent a few appeals like this myself already
  • Anne Boleyn
    Anne Boleyn Registered Posts: 196 Dedicated contributor 🦉
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    Tax return

    HI

    If you have 3rd party software you don't have to wait to get authorised.
  • deanshepherd
    deanshepherd Registered Posts: 1,809 Beyond epic contributor 🧙‍♂️
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    burg wrote: »
    Yes the SA penalty is limited to the tax outstanding at 31 January following the tax year. Although this is the last year that this will apply so don't plan on this for next year!

    Really? Yikes.

    Do you have a link? I'd not heard that one before.
  • burg
    burg Registered, Moderator Posts: 1,441 mod
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    Dean,

    It's addressed in the Finance Act 2009. Schedule 55 http://www.opsi.gov.uk/acts/acts2009/ukpga_20090010_en_68#sch55

    Paragraph 24 is of interest.

    It is currently understood to be brought in for 2009/10 returns i.e. those due by 31 January 2011. Aweb article (see second heading) http://www.accountingweb.co.uk/topic/tax/accountingwebcouk-guide-self-assessment/396954
    Regards,

    Burg
  • deanshepherd
    deanshepherd Registered Posts: 1,809 Beyond epic contributor 🧙‍♂️
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    Thanks Ian.

    What a poorly written Finance Act - very difficult to follow!

    I'm not sure paragraph 24 is very interesting but paragraph 17(3) is..
  • burg
    burg Registered, Moderator Posts: 1,441 mod
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    Must of missed 17 (3) far too much content and no not greatly written.
    Regards,

    Burg
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