A graduate from Sheffield Hallam University who has been served with a \u00a31,300 penalty from HMRC, for submitting a late tax return that was not his responsibility, cannot argue against the charge because of current tax legislation.<\/p>\n
Mr Dyson registered a business with one of his peers, Mr Walker, while they were students.<\/p>\n
They were aware of their legal obligation to submit a joint tax return, as well as their separate self-assessment forms; however, even though Mr Dyson submitted his self-assessment return on time in October 2013 (three months before the deadline), and sent copies of the relevant financial information to his business partner, Mr Walker then submitted the joint \u201cpartnership return\u201d six months after the deadline.<\/p>\n
HMRC automatically issued both Mr Dyson and Mr Walker with a daily penalty of \u00a310 per day, for 90 days, in addition to a \u00a3300 late fine.<\/p>\n
Mr Dyson was not \u201cnominated\u201d to complete and submit the return, meaning that he could not appeal HMRC\u2019s penalty, even though the \u00a31,300 fine had been issued to him personally.<\/p>\n
As both founders were full-time students when the business was set up, there was probably little or no tax due because of their personal allowances, but current legislation does not take that into account.<\/p>\n
The business ran for one year and made a profit of \u00a31,356, little more than the fine Mr Dyson was required to pay.<\/p>\n
Taxpayers or their representatives (including tax advisers) can usually appeal automatic penalties at the tax tribunal, an independent body which listens to arguments from the two parties (one being HMRC) and then makes a fair decision.<\/p>\n
Those affected do not have to pay a penalty while a corresponding appeal process is ongoing.<\/p>\n","protected":false},"excerpt":{"rendered":"
A graduate from Sheffield Hallam University who has been served with a \u00a31,300 penalty from HMRC, for submitting a late tax return that was not his responsibility, cannot argue against the charge because of current tax legislation.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"_links":{"self":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/748"}],"collection":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=748"}],"version-history":[{"count":1,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/748\/revisions"}],"predecessor-version":[{"id":749,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/748\/revisions\/749"}],"wp:attachment":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=748"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=748"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=748"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}