Just received a tax return letter demanding a fine to be paid...bit confused.

tomstickland

21st Dec 2009 letter demading a tax return for 28 Nov 08 to 27 Nov 09. This is the first letter I've received from HMRC regarding the company (resident's association).

22nd Dec 2009 letter informing me that I owe £100 for non filing of a tax return for period ending 27th Nov 2008.

The company is listed as a dormant company, was set up in 2008 and this is the first time I've heard from HMRC.

Should I just write back and follow the appeals process?

fengirl_2

If the company is dormant and has not traded, then you need to submit a nil return.

Cook_County

If the company is dormant & has not traded then surely it has no money to pay any penalty?

Mikeyorks

............ which will have the effect (£Nil tax payable) of reducing the penalty also to £zero -- as the penalty can't exceed the tax due. (incidentally - your years must be wrong?)

Elaine_Wilson

Mikeyorks wrote: »

............ which will have the effect (£Nil tax payable) of reducing the penalty also to £zero -- as the penalty can't exceed the tax due. (incidentally - your years must be wrong?)

I didn't think this provision applied to corporation tax. Am I behind the times?

tomstickland

OK, so I need to write to them then.

Tarasam

tomstickland wrote: »

OK, so I need to write to them then.

I, personally, would ring them and check out exactly the reason to the penalty.

mawallace

A Ct600 return is only due for a period in which a company has traded.

That being the case, if the company has been dormant, you can write to them telling them that for the entire period the company was dormant and therefore no CT600 is due. Therefore no fine will apply if you can convince the Inspector you write to.

However, legally, if they have issued a CT600 demand to notice to file a return, then you need to send in a NIL return, and the fine will stand.

Mikeyorks

Elaine_Wilson wrote: »

I didn't think this provision applied to corporation tax. Am I behind the times?

Whoops. No, you're not.

Apologies for that ....... I saw the £100 fine for failure to submit a Return - and automatically went into SA mode. The CT filing penalty isn't tax related. And will need an appeal ...... or a Return + appeal if they've issued a notice to file.

tomstickland

I sent in an appeal and have just received a letter saying that the corrected fine is £0.
Thanks.