Fine due to accountant failing to file with HMRC

[Sgpg]

Hello,
I just received a letter from HMRC where it appears from the HMRC letter that my company’s tax return had not been filed with HMRC and I believe that I will continue to get a £100 fine until the return is filed. I was not aware they failed to file.
During this period, I was with a large accountancy company which had a revolving door of accountants and the one who was assigned to me for that week and has since left appears not to have filed on my behalf.
This is somewhat complicated as the accountancy company have now emerged under a different name but some of the same management.
Also, my company had been dormant for 4 years so the submission would have been zero I guess for corporation tax.
Just wondering how I can ask them to file to stop me getting fined.
Many thanks

[WTFH]

Hello,
I just received a letter from HMRC where it appears from the HMRC letter that my company’s tax return had not been filed with HMRC and I believe that I will continue to get a £100 fine until the return is filed. I was not aware they failed to file.
During this period, I was with a large accountancy company which had a revolving door of accountants and the one who was assigned to me for that week and has since left appears not to have filed on my behalf.
This is somewhat complicated as the accountancy company have now emerged under a different name but some of the same management.
Also, my company had been dormant for 4 years so the submission would have been zero I guess for corporation tax.
Just wondering how I can ask them to file to stop me getting fined.
Many thanks

When you say your company is "dormant" do you mean that it's registered as dormant at companies house, or that you are just not using it?
You mention that you were with the accountancy firm - are you no longer using them? Who is doing the submissions on your behalf - confirmation statements, etc?

The way you have worded your post it sounds like this is from several years ago, which makes it strange.

[northernladuk]

Hello,
I just received a letter from HMRC where it appears from the HMRC letter that my company’s tax return had not been filed with HMRC and I believe that I will continue to get a £100 fine until the return is filed. I was not aware they failed to file.

It's an odd situation but ultimately it is your responsibility. You are legally responsible for your company. Relying on your accountant to run your company for you isn't a good way to do it, for exactly this reason and also the MSC problems floating around. I get many people don't do the detail but this is the risk if you don't.
In my experience if an accountant screws up they generally pay the fines. Talk to them to sort it.

During this period, I was with a large accountancy company which had a revolving door of accountants and the one who was assigned to me for that week and has since left appears not to have filed on my behalf.

Seems pretty simple case they've screwed up so they pay.

This is somewhat complicated as the accountancy company have now emerged under a different name but some of the same management.

Shouldn't be complex as you should be keeping an eye on your service suppliers. You'll have a contract with them and they will have informed you if that contract still stands or is being re-issued under the new name. Again, as a director this is your responsibility.

Also, my company had been dormant for 4 years so the submission would have been zero I guess for corporation tax.
Just wondering how I can ask them to file to stop me getting fined.
Many thanks

WFTH makes an important note. Truly dormant, all paperwork completed or just not sitting there not being used? Everyone gets this wrong so we have to ask evertime it's mentioned. Either way you still need to engage with your accountant to advise in changes to the company and they can change their offering/prices to suit.

WTFH mentions something about this being in the past and I don't understand the current situation but as I say, ultimately, you are legally responsible for your LTD regardless of what the accountants do. They just provide you a service. You can take them to task about their service but it's your signature on the submissions and it's you on the hook so need to understand those responsibilities and it's for you to fix this really.

If you haven't used it for 4 years maybe it's time to close it, particularly now you've attracted HMRC's attention?

[Sgpg]

Thanks I'll have to check the actual dormont status. I have traded since 2017.
The submission should have been done in 2022 I moved to a new firm in November 2022.

[northernladuk]

Thanks I'll have to check the actual dormont status. I have traded since 2017.
The submission should have been done in 2022 I moved to a new firm in November 2022.

You need to check your contract carefully. Although you pay a monthly fee it is a pro rata of a years contract. If you cancelled mid year then you didn't pay the full year and they may argue the work stopped dead. If you paid a full year then they are obliged to complete the years work, even if some of that falls outside the engagement period e.g. CT submissions after you've ceased, you still paid for it.

Check contract carefully, work out what you paid and what their responsibilities were that year and then have a sit down and if you think you are right don't let them off the hook.

[Craig@Clarity]

Hello,
Just wondering how I can ask them to file to stop me getting fined.
Many thanks

Can you pick up the phone and speak to your allocated accountant and ask them to file the CT600 asap? Then discuss who's responsible for the late filing fee?

[Sgpg]

Can you pick up the phone and speak to your allocated accountant and ask them to file the CT600 asap? Then discuss who's responsible for the late filing fee?

I would but the company has changed name and the accountant has left.

[WTFH]

Thanks I'll have to check the actual dormont status. I have traded since 2017.
The submission should have been done in 2022 I moved to a new firm in November 2022.

Just noticed that NLUK made a comment to you in 2021:

Is it truely dormant i.e. you've applied for it or is it just not trading. Big difference.

Are HMRC asking you for you 2021/22 return, or 2022/23?

[northernladuk]

I would but the company has changed name and the accountant has left.

Accountant leaving shouldn't be your problem but the name change could be problematic. Have they changed new or are they a new company entity. If it's just a rebranding then your contract should still be good and they didn't fulfill their responsibilities. If they've a new LTD then your issue is with the old LTD and they won't touch it if they are a new entity.

Sounds like, for an easy life, you will have to speak to your new people, see if they can do it quickly for you, stump up the cash and move on.

[Sgpg]

It's for 2021-22 and my contract covered the period when the CT -600 should have been submitted. I'm not sure of the legal status of the new company and its relationship to the old one but many of the same people are there except the accountant that was allocated to me.