Account didn't submit FPS to HMRC

[xantamisch]

My accountant ceased providing accountancy services in January 2014

I have just found out from my new accountant that "We have spoken to HMRC and they have confirmed that XXXX did not submit any FPS’ (full payment submissions) to HMRC. An FPS is sent via payroll software to HMRC to let them know about any payments made to employees and what deductions have been made. As XXXX did not submit these, we will need to treat all of your drawings as dividends" (for 2013 - 2014 tax year)

Who is to blame here? What is my course of action? I have emailed original accountant and their response is "Our service terminated in January 2013 (IT DIDN'T - IT TERMINATED IN JANUARY 2014) so I cannot understand what relationship we have re 5th April 2014 salary and indeed 5th April 2013".

Surely my original accountant should have set this up?

thanks

thanks

[Alan @ BroomeAffinity]

You reckon your accountant who you stopped working with in January 2014 should have submitted something in April 2014? really?

[TheCyclingProgrammer]

Assuming you switched to new accountants in January, then surely it must have been up to them to file it? If you had no accountant in April, then why didn't you do it? Ultimately it's your responsibility to ensure it was filed on time.

[Alan @ BroomeAffinity]

However, up until you kb'd then in January 2014 your RTI should probably have been taken care of. After that it's your problem I'm afraid.

[xantamisch]

You reckon your accountant who you stopped working with in January 2014 should have submitted something in April 2014? really?

no - I think the accountants who stopped working with me in January 2014 (they pulled out - I didn't) should have submitted it in April 2013 - I assume it should be submitted at the beginning of the tax year?

[xantamisch]

However, up until you kb'd then in January 2014 your RTI should probably have been taken care of. After that it's your problem I'm afraid.

please translate "kb'd then" and "RTI"

[Alan @ BroomeAffinity]

RTI submissions are supposed to be made in "real time". Difficult to do that ahead of time.

[Alan @ BroomeAffinity]

RTI = Real Time Submissions. In other words your monthly filings.

KB'd = knocked back. Terminated. Ended. Stopped.

[xantamisch]

I'm clearly being thick

Accountants "A" were my accountants from April 2013 to Jan / Feb 2014 when they informed me they were no longer doing accountancy ie their choice, not mine

During that period they did not submit the FTP for 2013 / 2014 - presumably they should have done so?

My new accountants have made all this very clear and I pay a monthly salary and dividends separately, Previous accounts - I drew whatever amount and they determined salary vs dividend at year end - which does now seem pretty cr@p but that was how they did it

[Alan @ BroomeAffinity]

Account didn't submit FPS to HMRC

That's a fair point. If they hadn't submitted to January 2014 then there is potential culpability depending on what your agreement with them is.

However, this could / should easily have been resolved after January and before April by your new accountants if they had been appointed, or you, as a responsible company director if they hadn't.

When were the new accountants engaged?