£100 late filing penalty refund question
Gem7321
Registered Posts: 1,412 Beyond epic contributor 🧙♂️
Hi
I'm completing a late tax return for a client who has been issued with £100 late filing penalty. Profit is just over £6k so no tax liability but there will be a small class 4 liability - he has suffered tax deducted at source (CIS) so will be due a repayment.
Will he get the £100 refunded because there's no tax liability even though there's a class 4? Or should I claim some CAs so there's no class 4?
Thanks
I'm completing a late tax return for a client who has been issued with £100 late filing penalty. Profit is just over £6k so no tax liability but there will be a small class 4 liability - he has suffered tax deducted at source (CIS) so will be due a repayment.
Will he get the £100 refunded because there's no tax liability even though there's a class 4? Or should I claim some CAs so there's no class 4?
Thanks
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Comments
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I'm pretty sure it's based on the amount outstanding at 31st Jan. If the net position is a refund then the tax (and NI) outstanding is Nil and so the penalty should be reduced to Nil.
99% sure but wait for someone else to confirm
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I've just re-read that and feel stupid, I'm now confirming I know I'm right. I still want reassurance though!
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Yep, had that a couple of times and the £100 is always refunded. Not sure if that rule in changing in the future though as the penalties are changing!0
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Yes the fine cannot exceed the amount of tax owed, i.e zero tax bill = zero penalty, however for returns 2010/2011 this is being scrapped and no longer applies.0
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Thank you!!0
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See here for a brief summary of the new penalty regime.0
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Handy summary, thanks.0
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Thanks Dean0
