UK tax penalties

    Recommended Posts



    We have been advised by our tax advisor (ex UK) that although we rent a property in the UK we didn't need to submit a tax return for 2010/11. We received several penalty notices and I spoke to the Inland Revenue in March and was advised we needed to submit returns. I passed this information onto our tax advisor and forwarded copies of the penalty notices and he still insisted we should ignore them and they would eventually stop sending them. I raised my concerns when the total amount owing was 2k GBP and he agreed he would complete tax returns for 2010/11 and would make sure the tax office didn't send further returns. Today I have received another penalty notice amounting to 2.6k GBP. I rang the Inland Revenue and they insisted returns had to be submitted and that even if we appeal the summons would still have to be paid. I explained that the property hadn't made any profit throughout the year so we didn't owe them any monies but apparently the nil liability rule has changed and even if we don't owe tax we are still liable to pay penalties for not submitting returns.


    We are so :realmad: as we went with an ex UK advisor due to complications of having UK property. Has anyone else had any experience of this or can offer some advice. We will appeal but it doesn't look like we've got any chance of them cancelling the penalties due to bad advice from our tax advisor.


    Thank you



    Share this post

    Link to post
    Share on other sites



    i'm so sorry to hear of your problems - we use Go Matilda for our tax affairs as Alan Collett (the owner) is registered in both the UK and Australia - it may be worth getting in contact with him and just getting him to look over what's happened. Anyway, my hope for you would be that the penalties imposed have been based on the tax that they think you should have paid - when they get the actual returns showing zero tax owed, these penalties will be reduced to simply being late return penalties which may only be in the £100's. (i'm not an expert so please don't take this as fact). Obviously you may have to take recourse against your current advisor if it is shown his advice has been suspect.


    All the best with this - please keep us posted as to what happens



    Share this post

    Link to post
    Share on other sites
    Guest Crushfamily

    Any income in the UK positive or negative outside of PAYE you MUST complete a tax return!

    Share this post

    Link to post
    Share on other sites

    Create an account or sign in to comment

    You need to be a member in order to leave a comment

    Create an account

    Sign up for a new account in our community. It's easy!

    Register a new account

    Sign in

    Already have an account? Sign in here.

    Sign In Now