Jump to content

 

BankFodder BankFodder


HP Mum

Tax Return Late Filing Query on fine and zero tax

style="text-align:center;"> Please note that this topic has not had any new posts for the last 2831 days.

If you are trying to post a different story then you should start your own new thread. Posting on this thread is likely to mean that you won't get the help and advice that you need.

If you are trying to post information which is relevant to the story in this thread then please flag it up to the site team and they will allow you to post.

Thank you

Recommended Posts

HI

 

I just got 2 letters from the Inland Revenue:

 

1) Said I had filed late and needed to pay almost £1000 in penalty fines.

 

2) Said my return for 10-11 showed I had 0 tax to pay.

 

The penalty letter was dated 2 days before the letter which stated I had no tax to pay.

 

Do I still have to pay the penalty ? Or were they assuming I would owe tax and were being penalised for not paying it ?

Surely it seems really unfair to have to pay the penalty on 0 tax?

 

(Yes I know I was months late and that was wrong but I never seemed to find enough hours to sit and finish it. Was eventually 4 months late...)

 

Does anyone have an idea on this ?

Share this post


Link to post
Share on other sites

...

Edited by BazzaS
duplicate / duff post, deleted.

Share this post


Link to post
Share on other sites
HI

 

I just got 2 letters from the Inland Revenue:

 

1) Said I had filed late and needed to pay almost £1000 in penalty fines.

 

2) Said my return for 10-11 showed I had 0 tax to pay.

 

The penalty letter was dated 2 days before the letter which stated I had no tax to pay.

 

Do I still have to pay the penalty ? Or were they assuming I would owe tax and were being penalised for not paying it ?

Surely it seems really unfair to have to pay the penalty on 0 tax?

 

(Yes I know I was months late and that was wrong but I never seemed to find enough hours to sit and finish it. Was eventually 4 months late...)

 

Does anyone have an idea on this ?

 

http://www.hmrc.gov.uk/sa/deadlines-penalties.htm#3

 

Length of delay Penalty you will have to pay

1 day late A penalty of £100. This applies even if you have no tax to pay

or have paid the tax you owe.

3 months late £10 for each following day - up to a 90 day maximum of £900.

This is as well as the fixed penalty above.

6 months late £300 or 5% of the tax due, whichever is the higher. This is as

well as the penalties above.

12 months late £300 or 5% of the tax due, whichever is the higher.

 

In serious cases you may be asked to pay up to 100% of the tax due instead.

These are as well as the penalties above.

[End QUOTE]

 

These are penalties for late filing, and independant of tax owed : so (even) with no tax owed the sums are:

1 day late, £100

90 days late, £1000

6 months late, £1300.

 

With tax owed, the late filing penalty sums remain the same, unless the tax owed is more than £6000, (where 5% will be greater than £300), while there is a distinct interest charge on late tax of 3% per annum, as well as penalty charges on the late tax, as well as the late filing penalties :

 

Length of delay Penalty you will have to pay

Thirty days late 5% of the tax you owe at that date

Six months late 5% of the tax you owe at that date. This is as well as the 5% above.

Twelve months late 5% of the tax unpaid at that date. This as well as the two 5%

penalties above

Edited by BazzaS

Share this post


Link to post
Share on other sites

Thanks for this.

I have been late every year :-(

And I never had to pay a fine previously when there is 0 tax to pay.

 

I can understand a penalty if there is money owed, but when one is scraping an existence and there is no tax owed, how can the IR make a claim for £1000 ??? They can not justify that as a viable expense. Is there means to query and protest ?

Share this post


Link to post
Share on other sites

I mean, if one does not earn enough and has barely enough monthly to pay for necessities, then how can the IR make such a huge claim?

A payment of £1000 means no-one eats in our house ! Just for being late with some stupid paperwork.

 

I have just seen there are forms to appeal on their website.

Has anyone had any positive feedback from the IR using these forms ?

I guess these are the new punitive rules for this tax year.

Share this post


Link to post
Share on other sites
I mean, if one does not earn enough and has barely enough monthly to pay for necessities, then how can the IR make such a huge claim?

A payment of £1000 means no-one eats in our house ! Just for being late with some stupid paperwork.

 

I have just seen there are forms to appeal on their website.

Has anyone had any positive feedback from the IR using these forms ?

I guess these are the new punitive rules for this tax year.

 

In previous years, they could charge a penalty (£100 from memory) for a late filing, even with no tax owed.

They have 'upped the ante' from 2010/11 tax year onwards ; and the penalties are certainly more severe.

 

As for appeals :

 

http://www.hmrc.gov.uk/online/excuse-missed-deadline.htm

 

Generally, a 'reasonable excuse' is when some unforeseeable or unusual event beyond your control has prevented you from filing your return on time. For example:

 

  • a failure in the HMRC computer system
  • your computer breaks down just before or during the preparation of your online return
  • a serious illness, disability or serious mental health condition has made you incapable of filing your tax return
  • you registered for HMRC Online Services but didn't get your Activation Code in time

Share this post


Link to post
Share on other sites

Do you think that, in principle, the fines are there for those who owe tax and to frighten everyone into filing promptly? yet, with the right words one could possibly get off the penalty?

I mean, there must be lots of people who are late and physically do not have £1000 or more to pay.

What is the IR's position if the person just does not have the money ? Are they going to send them to jail ? Are they going to send the bailiffs round ? How do they intend to get non tax payers to pay ? Have they really thought this through ?

£1000 penalty is an impossibility for a lot of people.

Can't dig heads in the sand if the IR are only going to impose more fines for being late with the fine !!

Can't borrow money, can't earn it. So how does one pay ?

Share this post


Link to post
Share on other sites

Not having a good day !

Share this post


Link to post
Share on other sites
Do you think that, in principle, the fines are there for those who owe tax and to frighten everyone into filing promptly? yet, with the right words one could possibly get off the penalty?

I mean, there must be lots of people who are late and physically do not have £1000 or more to pay.

What is the IR's position if the person just does not have the money ? Are they going to send them to jail ? Are they going to send the bailiffs round ? How do they intend to get non tax payers to pay ? Have they really thought this through ?

£1000 penalty is an impossibility for a lot of people.

Can't dig heads in the sand if the IR are only going to impose more fines for being late with the fine !!

Can't borrow money, can't earn it. So how does one pay ?

 

 

If you are a non-tax payer, have you asked them why you are still being required to submit returns?.

After a few years of "none owed" returns they MIGHT stop asking you to submit returns, unless your situation is unusual?.

 

The previous late returns may have triggered the next year's demand for a return?

 

http://www.hmrc.gov.uk/sa/need-tax-return.htm

Share this post


Link to post
Share on other sites

I mean that I am self-employed and am obliged to file self assessment return, but do not earn much. I did once, but last few years have been tough raising kids alone. I get help with working tax credits. Do the best I can and am hoping things will improve if I keep plugging away. In the meantime, am permanently exhausted keeping on top of things and yes have had family medical issues which really distracted early this year - another reason why I was so late. But bottom line is that this penalty is too punitive to pay - so what will the IR do? Keep increasing the penalty ? Force me to sell things to pay it ?

I will file the appeal - I think I have 30 days. But if they reject it, I wonder how they expect me to pay ?

Share this post


Link to post
Share on other sites

  • Recently Browsing   0 Caggers

    No registered users viewing this page.


  • Have we helped you ...?


×
×
  • Create New...