Tax Return Penalties !!

RajaStyle

My Tax accountant has completely screwed me up ! I sent him everything in September 2006 for my 2 Tax returns 04/05 and 05/06. As I have not sent one in before and the Inland Revenue have not requested one from me or sent me a reminder, he said we can make a voluntary submission and avoid penalties if we get it in by 31st Jan 07. I rang him on a regular basis to check progress and even to acknowledge he got everything and at all times evrything was fine and he was on top of it. I even spoke to him last week where he said he had nearly completed it. Then today I rang him to say I haven't still got it and he said I haven't received anything to do your return. I have been fuming !!!! There's not much I can say really I am speechless, can someone please explain where I stand, what I can expect to pay in fees, is there anything I can do about this ?

Many Thanks for all help in advance.

whatatwit

What does he mean by *he hasn't received anything to do your return*

Does he mean from you or from HMRC?

Presumably he has prepared your profit/loss statement?

(are you self employed, and if so, from what date)

WHA

Your 04/5 tax return should have been in by January 2006, so that was late anyway.

What exactly did you send him in September 2006?

Preparing business accounts and preparing tax returns are two completely different tasks. You need to do the former before the latter.

The tax return will need to include things like bank interest, wages, etc., not just your self employment results. Did you tell him all this information as well?

If you really gave him everything in September 2006, then you have a good argument for him to pay any fines you may have to pay regarding the late 2005/6 return due 31/1/07. Fines re the earlier year are not his fault as you gave him information after the submission date anyway.

Late filing penalties are reduced to nil if there is no outstanding tax liability as at the payment/filing date. So if there is no tax due for either year, no late filing penalties. If you think there will be a tax liability, if you pay the tax by the due date, then nothing is outstanding and therefore no late filing penalty.

RajaStyle

Yes I did give him everything he needed to complete my tax return in September 2006, so to confirm WHA if i miss the filing date of 31st Jan on both years I have no penalties to pay if I do not owe any tax ? Really ? HOw does that work, as I am sure I have heard of people who have missed the filing date and are due a tax rebate but have had still to pay the £100 fine ?

whatatwit

Until you have filed a return, if one has been issued, the the tax liability cannot be calculated by HMRC.
The penalty can only be cancelled/refunded once the return is in and processed.