Paper returns

JodieR

Got a client who I need to file tax returns for going back to 2006/07 up to 2010/11 - I think it would be easier to fill them all in on paper and send them in with a covering letter, but will the penalties be lower if I file the 2010/11 return online? Most years he's due a repayment and HMRC have only actually issued notice to complete a return for 2007/08.

jamesm96

JodieR wrote: »

Got a client who I need to file tax returns for going back to 2006/07 up to 2010/11 - I think it would be easier to fill them all in on paper and send them in with a covering letter, but will the penalties be lower if I file the 2010/11 return online? Most years he's due a repayment and HMRC have only actually issued notice to complete a return for 2007/08.

Yeah you're absolutely right. The paper return deadline for 10/11 was 31 October 2011 and the £10 daily penalties kick in on 1 February 2012, i.e. if you do paper return for 10/11 and submit it on 1 March 2012 (I know it's passed it just makes the maths easier) then there'll be a penalty of £390 (£100 flat rate plus £10 daily x 29 days).

The £10 daily penalties for online returns don't kick in until 1 May 2012 so you've still got time on that one!

JodieR

Thanks, i'll just have to point out in the letter that the 2010/11 return is submitted online. Are you sure that those penalties apply where a tax return hasn't been issued? is this where we get into the territory of whether there's a 'failure to notify' penalty instead/as well as? not really worth risking it though, I'll just file online!

Monsoon

JodieR wrote: »

Are you sure that those penalties apply where a tax return hasn't been issued? is this where we get into the territory of whether there's a 'failure to notify' penalty instead/as well as? not really worth risking it though, I'll just file online!

Yes this would be a failure to notify penality - no TR was requested thus no late filing fees - filing date is later of the usual deadline and 3 months after issue of return

jamesm96

Monsoon wrote: »

Yes this would be a failure to notify penality - no TR was requested thus no late filing fees - filing date is later of the usual deadline and 3 months after issue of return

Sorry, yes Monsoon's abslutely right. I thought your first post said the notification to complete a return was sent in 2007/08, not for.

I've not done it yet but I have one client myself who didn't tell us until 30 January that he wasn't registered as self employed... no late filing penalty but I'm hoping that we'll be able to successfully appeal the late notification penalty on the grounds of no tax / NI being due (which obviously wouldn't work for a late filing penalty).