Filing late tax return form

[raaj1235]

Hi All,

I am filling a late self assessment form for a friend as her accountant screwed up her accounts. Being newbie I am seeking help on this forum

Basically I am doing tax return for year ending Apr 2010. She had income from PAYE as well as self employment (short). Her self -employment was only started in may 2009 and ended in February 2010 (10 months only). No self-employment before or after this date.

After doing all research and using all forms (i.e. tax calculation summary notes, employment, self-employment short), I learnt that the amount she owes to tax office is 3920 gbp for tax year ending apr 2010.

Will there payments on account for tax 2010 - 2011 since her self employment ceased in the same tax year 2009-2010?

If no, I guess there is no question to claim to reduce payments on account!!

Also what are the penalties for this late tax return and late payment? just wanted to confirm that old penalty rules will apply as mentioned in link below:

hmrc.gov.uk/sa/late-return-pens. htm


Thanks in advance for any help offered here.

 

[faradaykeynes]

you can ask HMRC for installment on tax due and reduction or waiver of penalties if you have genuine reasons if not then most likely she will end up paying penalties and interest on over due tax

 

[raaj1235]

you can ask HMRC for installment on tax due and reduction or waiver of penalties if you have genuine reasons if not then most likely she will end up paying penalties and interest on over due tax

Thanks for your reply.

However I am still looking advice on 'payments on account' question.

"Will there payments on account for tax 2010 - 2011 since her self employment ceased in the same tax year 2009-2010?"

Thanks once again

 

[faradaykeynes]

no, there should not be as business is not going concern and there wont be any future assessment on it therefore no question on payment on account

 

[raaj1235]

no, there should not be as business is not going concern and there wont be any future assessment on it therefore no question on payment on account

Thank you very much

 

[Rolo Tomasi]

Since a 2009-10 Tax Return was issued and not submitted by the due date it is likely that a 2010-11 Return will also have been issued and will therefore need to be submitted. As this Return is now also late there will be penalties charged and these are currently running at £10 a day even if there is no tax due!! You may be able to appeal against the penalties if there is a 'reasonable excuse' for late filing but I would still recommend checking if a 2010-11 Return is required and if so submit it ASAP.

With regards the payments on account, if no tax is due for 2010-11 then there will be no payments on account due but the Revenue will not know the tax position until the 2010-11 Return has been filed. Therefore if you are sure there is no underpayment for 2010-11 you should apply to reduce the payments on account (form SA303) when submitting the 2009-10 Return.