Dodgy Accountant

[woger]

Hi,

My tax corporation return was incurred with a late fee penalty £150 and a (S419 ICTA 1988) 25% tax charge £1292 giving a total of £1442. I paid £1820.60 to my accountant for their fee services but can't believe they failed to provide any information regarding the S419 ICTA 1988 and I have to pay the late fee penalty.

Can I retrieve the penalty/charges from my accountant ?

Please help.

Thanks,
Woger

[xoggoth]

Had to look that up but believe the tax payable on director's loan is on account and is in fact fully recoverable from HMRC if the loan is then repaid within a certain period, this will be on HMRC site, including the CT600 guidance PDF. As for the charge, if all information was provided on time and late return was really down to accountant error I would certainly be pressing them to pay it.

[xoggoth]

Here:

HM Revenue & Customs: Directors' loan accounts and Corporation Tax explained

Your company can reclaim any Corporation Tax paid nine months after the end of the accounting period in which the loan was paid off (or released or written off). However, the claim must be made within four years from the end of the financial year in which the loan is repaid

[Clare@InTouch]

Hi,

My tax corporation return was incurred with a late fee penalty £150 and a (S419 ICTA 1988) 25% tax charge £1292 giving a total of £1442. I paid £1820.60 to my accountant for their fee services but can't believe they failed to provide any information regarding the S419 ICTA 1988 and I have to pay the late fee penalty.

Can I retrieve the penalty/charges from my accountant ?

Please help.

Thanks,
Woger

As xoggoth says, the S419 charge is because of an overdrawn loan account, and it will be repaid to you when you repay the loan to the company. Were you aware of this? Was it repaid within 9 months of the year end?

If the CT return was late, then presumably you also have a fine from Companies House. How much time did the accountant have to prepare the accounts?

[woger]

As xoggoth says, the S419 charge is because of an overdrawn loan account, and it will be repaid to you when you repay the loan to the company. Were you aware of this? Was it repaid within 9 months of the year end?

If the CT return was late, then presumably you also have a fine from Companies House. How much time did the accountant have to prepare the accounts?

I was unaware of the S419 charge and I provided all the account details four weeks before the last day,

Thks.

[malvolio]

I was unaware of the S419 charge and I provided all the account details four weeks before the last day,

Thks.

Four weeks before the deadline for payment? May be a bit of a clue there....

Mine are usually in within a month of year end, eight months before the payment deadline...

[psychocandy]

Yeh, if your accountant asks you for info and then warns you if it aint provided in time you'll get fined then you've only yourself to blame! If they dont say anything and lead you to believe its all ok, then its different.