Late Filing Fee - Client or Accountant

[Andrew @ PLA]

If push came to shove who is liable for a late filing fee?

[Williams lester]

The client, unless you offer a guarantee (as we do) to say otherwise.

[Andrew @ PLA]

thanks very much Dave :)

[David Griffiths]

Surely the answer is that it depends.
Why are the accounts late? Because the client was late with the records, or didn't respond to queries? Or because the accountant took too long to prepare the accounts? Or because after the accounts were signed, the accountant forgot to file them?

Not enough information to voice an opinion

[Jenni384]

Surely the answer is that it depends.
Why are the accounts late? Because the client was late with the records, or didn't respond to queries? Or because the accountant took too long to prepare the accounts? Or because after the accounts were signed, the accountant forgot to file them?

Not enough information to voice an opinion
Agreed. It all depends on the circumstances of each fine.

In our letter of engagement we state dates that we need information by and that we need queries answered promptly, in order that we can guarantee to file on time.

In general, if the terms in the letter of engagement are followed by the client, and things were filed late through no fault of the client, the accountant should of course pay the fine. If information is provided late, or was missing, and the accountant makes reasonable effort to chase the client for the information in good time, then it is more likely the client is due to pay the penalty.

Penalties and interest on overdue tax should normally be the client's responsibility as they know they owe tax by a certain date and if they don't know the exact amount, it's reasonable to make a payment on account of an estimated amount. Again, the specifics of each case would be down to the exact circumstances giving rise to the penalties/fines/interest.

[Williams lester]

Surely the answer is that it depends.
Why are the accounts late? Because the client was late with the records, or didn't respond to queries? Or because the accountant took too long to prepare the accounts? Or because after the accounts were signed, the accountant forgot to file them?

Not enough information to voice an opinion

Not enough info....but, it is the client that CH or HMRC will look to for the late filing penalty not the accountant.

[KM-Tiger]

Had a late filing once.

We agreed that it was classic "stalling between two fools", and paid half each.

[Homshaw]

Once had a client came in on the 30th January with an horrendous set of partnership accounts.

Worked until 11.30 pm to finish them off. Got them signed the next morning. Filed the two individual returns but forgot to press the button on the partnership return

Ended up footing two 100 pound fines. Wouldn't care but his year end was 30th April.

I consulted with friends who felt I should pay it but can't say I felt it was all my fault.