h&h Accountants Ltd
h&h Accountants Ltd
16-17 Hammet Street Taunton
Somerset TA1 1RZ
T  01823 325610 F 01823 325611
E  more@handhaccountants.com		 h&h Accountants Ltd
Horton House, 8 Ditton Street, Ilminster Somerset TA19 0BQ
T & F  01460 52666
E  more@handhaccountants.com
home payroll book keeping VAT accounts tax planning enquiry protection other services contact

Back to News Items
 Building Contractor’s - Don’t lose your gross payment status!

TAX CASE: INCORRECT ADVICE

A construction company Thames Valley Renovations applied for gross payment status. HMRC refused the application on the ground that the directors of the company had failed to meet their obligations with regard to their personal tax affairs because they had filed their self assessment tax returns late.

The taxpayers asked their accountant about their personal tax returns who advised them that as they had no income they did not need to file a tax return. The accountant also told them to ignore the late filing penalties they received for the same reason.

However, when the directors applied for gross payment status, they were told by HMRC that because their personal tax returns were outstanding, this would not be granted. The directors therefore tried dealing with HMRC to obtain new copies of the relevant tax returns to complete, but the department had the wrong address for the taxpayers and so they did not receive the returns. They were unable to file all the outstanding tax returns online.

The tribunal concluded that the directors had reasonable excuse for filing their returns late. They had acted reasonably in relying on their accountant’s advice and tried to sort out their affairs once they realised the advice had been incorrect. The taxpayer company’s appeal was allowed.

For advice on YOUR BUSINESS RECORDS situation, and how to keep proper records, contact us Here

Back to the Top

Back to News Items

 

 

H and H Accountants limited. Registered in England No. 3058429.  16 Hammet St. Taunton TA1 1RZ.   Website and content © 2012

The material included on this website is for the general interest of our clients and business contacts. It is intended as a guide only and provides an overview of regulations in force at the time of publication. No action should be taken without seeking professional and specific advice and therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material published on this website can be accepted by the author or the firm.