self assessment tax returns

[Goodwill]

The revenue made an enquiry on my self assessment year end 2004-2005 after consultation with my accountant they decided to broaden there enquiry to cover self assessment returns between 2001-2006, they claim i have committed an offence under S95 taxes management act 1970 and that i am negligent in dealing wih tax affairs during the dated years and as a result have attracted a penalties which consists of additional duties,interest and net penalty. I am unable to pay these duties and would appreciate advise on how i stand legally. Thank you

[Skyline D]

How you stand in respect of what?

If they've assessed a penalty on you and your accoutant isn't able to negotiate any further reduction (and I presume he's not suggesting it's wrong and needs appealled to Commissioners since you haven't mentioned it) then you have to pay it.

If you can't afford to pay it then they may be amenable to an arrangement whereby it's paid up over time. If not, or if you still can't pay then it becomes the same as any other debt you can't pay. They'll put it in the hands of collection agents, etc.

[Tom Braider]

The Revenue don't use collection agents. They will take Court action to enforce payment or may seize goods. See this link: http://www.hmrc.gov.uk/howtopay/dontpay.htm

Usually, though, enquiries are settled by means of an offer, which can be significantly less than the full amount owing. See here: http://www.hmrc.gov.uk/manuals/emmanual/EM6214 .htm

The revenue don't mess about. You haven't paid your proper wack and they want from you what everyone else has paid, and more. But if you really can't pay they will listen to your reasons. You might be able to get away with teh penalty, at least.

[dotovaposted]

How does Goodwill stand as regards the accountant failing to get the return/assessment correct? Does the accountant have some kind of insurance for this type of thing? I am unclear as to why Goodwill is being penalised when it is the accountant that did the returns.

[Tom Braider]

No joy there. Your tax returns are signed by you, nobody else. It's your responsibility to make sure they're correct. I know of NO exceptions to this.

[dotovaposted]

Ahh, i get that. But the hiring of an accountant for the job should give some kind of guarantee to the person paying his ffe shouldn;t it? If a plumber makes a mistake fitting a boiler then he is responsible isn;t he? Even though it is in your house and you are the owner .

[Skyline D]

You cannot possibly attempt to hold the accountant responsible in cases where the taxpayer willfully withholds information from him.

Most penalties are as a result of something the accountant could not have known about. Or did know about and warned the taxpayer of the consequences but the taxpayer went ahead and took the risk anyway.

Even if the accountant does happen to be at fault the Revenue will still assess the taxpayer. It is YOUR responsibility to submit a correct tax return and cannot be set onto someone else. If the accountant has made an error then the taxpayer will have to make separate claim on his Professional Indemnity Insurance for recompense.