To ensure you make business decisions based on accurate information, let Fawcetts be your bookkeepers. We will remove the administrative burden of record-keeping, and eliminate the worry and risk of error that can come with doing your own accounting.
Your company’s books and financial statements are your overview of the health of your finances, as well as an early warning system that lets you know when and why the business may be on a rocky road. Financial records also provide the basis for many decisions made by third parties such as banks, landlords, potential investors, and trade creditors as well as taxing authorities and other governing bodies. Given the importance of financial records you may want to consider outsourcing this function to reduce the risk of errors and potentially save costs. We offer a full outsource service click here for more details.
Request a callback
A response to a freedom of information request has revealed that HM Revenue & Customs (HMRC) cancelled 270,000 late penalty notices in 2016.
However, this figure was dwarfed by the 610,000 cancellations in 2015 and the 400,000 cancellations in 2014.
The request was made by a partner in a ‘magic circle’ law firm, who was himself issued with a late penalty notice, despite having submitted his tax return in December, ahead of the 31 January deadline.
Despite having filed on time, when HMRC overturned the penalty in March this year, it nevertheless issued a letter, stating “if you file on time we won’t charge penalties”.
While HMRC revealed the number of late penalty notices that were cancelled over the three-year period, it did not disclose how many of these were the consequence of errors on the part of the Revenue, as opposed to the taxpayer having a reasonable excuse for late filing.
A spokesperson for HMRC said: “We don’t want penalties, we just want tax returns. Taxpayers with a reasonable excuse for filing late or who have been taken out of SA do not have to pay penalties. Taxpayers who file on time are not issued with penalties.”