3 years' accounts!?

System
System Posts: 100,537 🤖 Admin 🤖
edited June 9 in General accounting discussion
I have been asked to produce accounts for the last three years and deal with HMRC accordingly......Great!! Not having dealt with this sort of thing before, are there any particular procedures to follow (or pitfalls to avoid!)

Thanks in advance.
Simon

Comments

  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:3 years' accounts!?

    In what respect?

    Kind regards
    Steve
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:3 years' accounts!?

    Hi Steve

    None particularly, Steve. I was generally thinking of timing of payments, calculation of liabilities, given interest and penalties already incurred.

    Thanks.
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:3 years' accounts!?

    Any tax returns prior to 5 April 2007 and any tax liability due on those returns will have to be paid straight away. If the Revenue have levied penalties and interest and there is a tax liability due, they will not mitigate or cancel these. I have just done a client's SA returns for 4 years and one of the years (2005 I think) the tax liability amounted to 88p - and they would not reduce the penalties!!

    If the returns levy a refund, then of course they will cancel the penalties and issue the refunds - though tell your client not to hold his/her breath waiting for the refunds!!

    Kind regards
    Steve
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:3 years' accounts!?
    peugeot wrote:
    I have just done a client's SA returns for 4 years and one of the years (2005 I think) the tax liability amounted to 88p - and they would not reduce the penalties!!

    Steve, if the penalties are quite substantial in comparison to the tax liability then they can mitigate! Whoever is saying that to you is thinking of their commission! Checky buggers! :lol: Interest will not be mitigated though. If you want to PM me I'll let you have the statutory references to go back to them with!

    BlueRhapsody, if you are this unsure of taking the job on, is it wise to take it on?

    Regards

    Dean
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:3 years' accounts!?

    Hi Dean,

    It's quite a complicated scenario and the client jumped up and down at our fees - despite them not being unreasonable - so I'm not prepared to do anymore than I have to. If the client wants his penalties back, then he can deal with it.

    Thanks anyway.

    Steve
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:3 years' accounts!?

    ah, one of those clients' eh? :roll:

    Regards

    Dean
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:3 years' accounts!?

    Quite.

    They're happy to sit in my office for however long whilst I give them advice (which they think is free) and then whinge when I give them a fee note for not only 3 year's tax returns, but also the letters i've written back and forth to HMRC, telephone calls back and forth to debt recovery and eventually getting them on track!!

    The problem is (and I'm sure all MIP's have these) - most clients think that advice is free because it isn't tangible!!

    Some people! :roll:
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:3 years' accounts!?

    Totally agree!

    I have an 'old skool' builder, if he can see a walk being built in 3days or whatever, he thinks that good. I spend 2 weeks sorting his accounts and tax out he can't see that so goes off. Wouldn't be so bad but it's the same every year! :roll:

    Regards

    Dean
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:3 years' accounts!?

    Sorry, Simon, Dean and I have invaded your post - have I answered your question?

    Best regards
    Steve
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:3 years' accounts!?

    Just to add, as it is relevant to calculating penalties and interest..

    Late filing penalties are restricted to a maximum of the tax outstanding, so if the tax is 88p then so is the penalty - you could try and mitigate further if you like!

    Also, here is a link to HMRC interest rates. Can be quite handy for doing this exercise.
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:3 years' accounts!?

    I did get the penalties reduced but the £100 fines were not able to be waived due to the actual payment due - I think I confused the issue slightly here!!

    Many thanks.

    Best wishes
    Steve
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:3 years' accounts!?

    Yes, Steve, you have answered my question. Many thanks to you and all.
    Simon

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