Penalties & Surcharges

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT member discussion
I have just taken on a client who has not paid her tax for 2005-06 and no payments on account for 2006-07.
She has made minimal payments very occasionaly but is quite happy to bury her head in the sand over this :twisted:
Other than the usual penalties, surcharges & interest that have already been charged, are there any other penalties etc that can be imposed and is there a time limit set for when the tax has to be paid?
How patient are HMRC in such cases? :roll:


Sharon

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Penalties & Surcharges

    I have recently had a client who came to me with his 2004/5/6 and 7 return to deal with! Uncompleted of course

    The Revenue do issue determinations which are based on the last return submitted. If they owe tax at the end of the respective tax year then the penalties and interest are not usually waived, if they don't then they are.

    Kind regards
    Steve
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Penalties & Surcharges

    Don't forget that the revenue have their own *Bailiffs*, their own warranted tax collectors who turn up on your doorstep, unannounced. If they want your clients money, they will come out and get it, by hook or by crook.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Penalties & Surcharges

    Thanks guys :)
    In terms of advising my client what should I say?
    I realise that it is the client's responsbility to ensure tax is paid but I really want to explain the repurcussions if this 'head in the sand' mentality carries on.

    Sharon
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Penalties & Surcharges

    I would just advise them that the onus is on the taxpayer to prepare correct returns - not the accountant and failure to pay the correct levels of tax could lead to prosecution.

    I always advise clients that late or non-payment of tax carries fines and interest which can be avoided if they adhere to the stated deadlines.

    Kind regards
    Steve
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Penalties & Surcharges

    Thanks Steve, great help as always :)

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