I filed 13-14 accounts late.

I paid £100 penalty in the summer.

Normally I receive a letter of acknowledgement of receiving my return and whether I have any tax to pay a few months after filing.

I didn't hear from them so I chased in Sept/Oct - when they said there had been a processing problem with a bunch of returns that came in around the time mine must have arrived.

Last week I just received notification that I had £0 tax to pay.

Yet this week I received notification that I had £1200 penalty to pay.

How can this be?

No tax; yet such an enormous penalty.

 

 

I don't have any 'valid' excuse for being late. And I don't have enough £s to pay it either.

What can I write to ask them to waive such a huge penalty??

Any kind of advice is welcome, thanks...

If you were more than 6 months late filing, (rather than the delay being at their end) but less than 12 months late, the total penalty is £1300, which is where you might have the £1200 from if you have already paid £100.

How late were you in filing?

You could appeal to their good nature and generosity, highlighting that you've never been late before and didn't know of the penalties.

However "ignorance is no defence", but for someone with a clean slate and no reason to already be aware it might be worth a try.

For ideas as to what they regard as reasonable excuse (& what isn't!)

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/354412/sa370-notes.pdf

http://www.consumeractiongroup.co.uk/forum/showthread.php?357282-Tax-Return-Late-Filing-Query-on-fine-and-zero-tax&p=3903257#post3903257

Ohh. You've been here before (2012).

I doubt you'll get given much leeway.

What was the outcome in 2012?. You never updated that thread with the result of your appeal and if you had to pay in the end.

14/15 filing deadline looming large .....

Hello

I am looking at releasing a large % share of my residential property, to an investor.

Its currently my prime residence. But I want to get some cash out of it, pay down borrowing, move out, and run it as a short-term joint venture BTL - until the market improves.

Would the in-coming investor be liable for sdlt?

Its not a huge issue, it just affects the yield proposal.

Are they buying - Thus liable for sdlt on their %?

Or is it an investment - No sdlt?

Just a legal arrangement that an (equal value) % of the rental income goes to the investor?

I think I understand that if the investor later wanted 100% ownership - that the initial cash investment would retrospectively be considered exchange? With sdlt liable to them upon completion?

We rent / then sell when market improves.

Just a legal arrangement that an (equal value) % of the sale price is paid to the investor upon sale? So no sdlt to investor?

Just the incoming purchaser pays sdlt on the full value at that time?

It seems a bit confusing to me that sdlt could be paid twice on the same property??? Once as an investment into the asset to receive rental income and secondly when the property gets sold to a 3rd party.

How does it work?

Hi.

Is sdlt stamp duty?

I hope you'll get some replies but it may be that this is too complicated for an open forum and you need legal and/or accountancy advice.

HB

yes sdlt = Stamp Duty Land Tax

My thought about professional advice still stands but I would have thought that sdlt is charged on change of title to the property.

Would you be better selling now? If Brexit goes badly prices could drop substantially.

HB

Thanks honeybee. That's what I thought too. So any investment should be considered a 'loan', much like a bank loan, with a charge. Then the investment is secure and there would be no sdlt to pay. I need to find an investor ready to invest in the 'project' - then lawyers can get involved with creating a clear agreement. In an ideal world

On the tax part of this, have you thought of ringing the Revenue? They may be able to help.

HB

but you will pay more stamp duty on your new property as you will have more than one to your name.

It may be wiser to set up a limited company and each invest in that to create a share book fo say a nominal £12 worth of shares and each has as many as their capital interest. So, if the house is worth £300k and investor is giving you £200k then your holding will be £4 and theirs £8.

That may well avoid a big stamp duty bill on the transfer of the deeds adn save you both money as income will be via dividends rather than earningsa nd CGT will be less when you sell up. Also you wont have 2 houses so lower stamp duty when you downsize.

The real fly in the ointment will be getting a watertight contract drawn up for the creation of the LC or you might find yourslef homeless if you have chosen a wrong un to do business with

thanks ericsbrother

I think I may give up on this idea. Its getting complicated and I want a simple life!!

Without going in to too much confusing detail - I don't want to buy a new property - I am splitting one lease into 2 leases with (my) FH ownership remaining the same under both. I wanted to keep one lease property for myself to reside in and take a partner on the other lease to run as a btl - so releasing some equity (to pay off current borrowing) and have a rental income... But it is getting awkward on valuations in this current depressed market.. And the investment/ sdlt issue is a moot point.

Lawyers have done the work (not sure how they did it legally) / revised titles are not registered yet.