late tax filling penalty(11 Posts)
I am in such distress right now about my accountant company and taxes it is so bad. I have a limited company, in may 2015 i put it on hold instead of closing and went to get a job. My accountant advised me to do that because I wanted to keep it but needed to have it dormant.
I don't think they put it dormant properly and did not file my year end properly and also did not notify me about doing self assessment tax and now I got a horrid fee of late penalties that will look like to add up to £1300. It was going to be £1000 but because they did not file it today it will go beyond 6 months now. I dont have this money, I do have some personal reasons I can appeal on however I feel like my accountant really messed up. Is there anything I can do about it? Where can I complain?
I'm not hugely knowledgeable as I've only just started my own LTd company but I think in the first instance you need to write a formal letter of complaint to the accountants.
Clearly set out each issue you feel they failed you on and ask them to respond.
I'd imagine there's a governing body (FSA??) who would have more information on complaint escalation.
This is going to be a tricky one as your limited company and your self assessment tax return are ultimately your responsibility, not your accountants (I imagine their letter of engagement negates their responsibility for all of this)
I would get another accountant to help you sort all of this out ASAP
No such thing as making it "dormant properly". Accounts and tax returns must still be filed annually whether dormant or not. Both Co House and HMRC would have sent reminders to the registered office address - if that's your address, why did you ignore them? If it's the accountant's address, why did they ignore them? Did you give your accountant the "books" for that year as normal, did they ask for them? I'm afraid you may have to accept as much blame as the accountant. I don't think you'll get far in making a complaint to their professional body (assuming they are qualified), nor in any court case against them - you're the directors and it's the director's responsibility to prepare and file accounts & returns.
My company registered address is with my accountant. I recently called them on another matter and they updated my address.
I only got a letter from revenue this week saying I own tones of money they sent nothing to me before. I had no reminders but in the past my accountant when my company was trading would send me reminders, not this time... It is tricky as I was not dealing with my company and was already working somewhere else. I pay this company monthly to keep my records and inform me of things to come.
Oh well, good luck to me with all this crazy penalties. It feels like life is just slowly strangling...
If you've been continuing to pay your accountant every month, then yes, they should have been dealing with your accounts/tax filings. But, by continuing to pay them, your company isn't dormant - that means no transactions at all! You need to get your accountant to prepare and file what's outstanding and then you need to start the conversation about them reimbursing you for the late fines etc if you've given them everything they needed and it's them at fault for not doing it.
I would inform HMRC and ask them what would be the best way to deal with it. They might be more accommodating than you think.
I would also get some legal advice on where you stand re your accountant. If you have been paying them until now and they have been told to put the company dormant and they deal with your tax return, it is actually their resposnibility to let you know you are late/inform you of any letter from HMRC etc... They should also be listed as 'the person to contact' with HMRC.
And I WOULD be contacting their professional body about it as well as the Federation of Small Businesses. They are usually very good at advising you on that sort of stuff.
YY about the accountant being responsible and paying the fines too!
And I WOULD be contacting their professional body about it as well as the Federation of Small Businesses
They'll only have a professional body IF they're qualified/regulated accountants. Even so, something mundane like late filing isn't really of interest to a professional body unless there are multiple reports of the same for the same accountant. The odd "mistake" doesn't attract any action.
FSB won't be interested as they're not a consumer organisation and don't have any disciplinary nor regulatory powers.
Hello, Thank you all for advice. I wrote an appeal letter to the revenue to wave the fee, the account supposedly put self assessment today but I did not get the final confirmation so who knows. I told them I was not happy with them and they just said they wrote something in newsletter about it and send me 2 emails but I checked and there was none of the emails, I keep all the emails. if the hmrc does not wave my late penalty i will come after them and complain about them to the professional bodies recommended. The bottom line my tax return is £0 every time and i have no reason to avoid filing so hopefully they will let me off his time. Thanks all!
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