The run up to the filing deadline of 31st January is always a difficult time for Accountants as they try to lodge client’s Returns before the deadline and thus save them late filing fines.
Every Accountant knows that clients who have self-employed income or rental income in any given tax year have to file a Return it is that simple. Equally every Accountant will have clients that fit exactly that criteria and for some inexplicable reason HMRC have decided to take them out of the SA system possibly because they have a small part-time job in the year or usually because of an unknown “muck up”. We can usually manage this without too much trouble throughout the year but when it comes down to January there is simply not enough hours in the day to try to get HMRC to sort the situation out so what do good Accountants do? Well, the client has an SA reference and they have to file a Return so we file a Return and make sure the client pays the tax that may be due by the due date wherever possible and save them late filing fines and interest charges. This has happened virtually every year since the inception of self-assessment but HMRC would prefer it not to happen this year apparently.
In November HMRC told Accountants that rather than actually file a Tax Return with the SA reference operative for the client they should go to the bother of re-registering the client first with HMRC.
Why? Good question apparently it is because the P800s or even the simple assessment which MAY be issued is corrected or even suppressed, both of which we are capable of putting right IF it happens post the filing deadline far easier than trying to re-register a client in December or January.
Yet more proof positive that HMRC do not understand the dynamic of the filing deadline and that they feel it appropriate that Accountants should do all the work to rectify their mistakes.
Personally, would I file and worry about a P800 rather than try to re-register? ABSOLUTLEY
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