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over 5 years ago
In July 2016 I found out that my client (who lives in Indonesia) had sold a UK buy to let property in October 2015. I immediately sent in a NRCGT return online. He now has a penalty notice for £1,300...
ATED Agent Registration
Has anyone managed to get this to work recently? It asks for Business Type, Agent Name and UTR. We filled in our partnership details and it gives an error message saying not recognised! It has proved...
CG T OR IHT
The house is sister A principle private residence for the last 4 years with no mortgage. She is giving her house to sister B and moving out. The house will then be sister B PPR. Is it just a PET for...
Can anyone provide any guidance on the following problem, please? Company A sells the goodwill of part of its business for £150,000. It then reinvests all of the proceeds by buying an 80% interest...
New associated company rules
My client is one third shareholder in company A and a director (other shareholders are not connected). He is also 50% shareholder with his wife in company B. Company B provides consultancy and office...
Late P11D penalty warning despite submission on time?
over 5 years ago
A client yesterday received an HMRC warning letter headed '
P11D(b) interim penalty letter
' and, in big, bold letters, '
Outstanding expenses and benefits forms P11D and P11D(b): you need to act
'. It goes on to say that HMRC had written in June to remind the client of the 6 July P11D deadline and warning of a penalty. Then: "We are writing to all employer and their agents who have not submitted returns ..."
The client was angry that his P11Ds had not been submitted, so he called. They
gone in, and they had been acknowledged, but HMRC had sent the letter anyway.
If the client had continued reading, the letter said lower down 'If you have already filed ... thank you. Please ignore this letter.' But he didn't get that far before he saw red.
It took a member of staff about an hour to deal with (pacify) the client, check the files, speak to HMRC to get to the bottom of it and give the story to the client. A total waste of time for all concerned.
HMRC told us that they won't have logged all the P11Ds until late August, so it doesn't know yet who has submitted and who hasn't. This presumably means that the letter was simply sent to everyone who was expected to submit, as a reminder of the penalty for late filing. This is understandable, given the timescales for logging and contacting employers, but the wording chosen was very poor.
Knowing that they were writing to everyone, including the compliant (who will now be totally hacked off), why didn't the letter start with "Please ignore this letter if you have submitted all your P11Ds"? In big, bold letters?
After all the effort that went into agreeing a good P35 warning letter this year, it is frustrating and disappointing to receive such an ill-thought-out, unnecessary warning that has wasted so much time.
It would be interesting to know how many others have had the same problem with an irate client. A local practitioner emailed me this morning about six cases in her practice alone. It wasn't just her clients' blood that was boiling.
over 5 years ago
We received the same letter on two clients on the same day. They are associated companies and the P11Ds & P11Dbs were submitted for both companies in the same envelope on 30 May 2012. Interestingly HMRC issued new coding notices on 27 June 2012 (which are clearly based on the submitted P11Ds as they contained some very specific amounts that HMRC could not otherwise have known about). The letter from HMRC is dated 23 July 2012 so they cannot even use the excuse that there is a processing backlog.
We dealt with it and advised the client before even the client was aware of it. I have submitted our invoice to HMRC for the time unnecessarily incurred.
If HMRC are going to use automated systems for their draconian penalties they need to get their systems sorted out first rather than putting everyone else to the trouble of resolving problems that HMRC have created.