Video instructions and help with filling out and completing Where Form 843 Tier

Instructions and Help about Where Form 843 Tier

Hello my name is Simon groom and I'm director of exam training and practical guidance here at Tolly at tully we have a wide range of products to help tax and accounting professionals to do their job one of those products is our practical guidance product called Tolly guidance and what we want to do is talk to you today a little bit about the robert morgan case now with me today to discuss this is ben saunders who's I tax manager on our owner manage business model of module of Tolly guidance now what we're going to look at today is a little bit about why it's important for you and your clients and then to tell you where you can find out more information about the case and what you need to do now so then he tell us a little bit about why this case is so important well this case is important because it does question HMRC's ability to make automatic daily penalties it's a first-tier tribunal decision which means that it's not actually it doesn't set a legally binding precedent but the facts of the case will be common with with most taxpayers in the self assessment system so the finding in fact will be applicable to a lot of self assessment tax return submissions which was submitted and receive daily penalties okay so I imagine that some there's going to be a number of people out there in this situation so who who can't entity challenge these and take advantage of this decision well really it it's going to be anybody who has received daily penalties the finding of facts in it is quite fundamental primarily the case relates to self assessment tax turns for individuals but because HMRC's systems are automated we think that it will be equally applicable to partnership tax returns trust tax income tax returns and it also may be applicable to stamp duty land tax returns and inheritance tax returns depending on the facts of the case but primarily self assessment tax and it should be available to any taxpayer who has received daily penalties whether they are within the 30-day time limit to appeal or not if you're outside that time limit we think it is possible for you to appeal on the basis of using a reasonable excuse of that the facts weren't available that HMRC fail tissue were notice correctly so these are the 10-pound daily penalties that have come in recently aren't they yes that's right yeah so what was the what was the original challenge I mean why because surely I mean my understanding was that we've got these daily penalties and it was fairly clear that the revenue could impose them so how come we've had this case well the the case was brought in relation to not only the daily penalties but the the fixed hundred pound late filing penalty as well and and really this came out I'm pretty much technicality was it was against the it was against the background of them trying to argue a reasonable excuse and in the case of one of the taxpayers it was found there was special circumstances where the where the daily penalties wouldn't apply anyway that was robert morgan in the case of mr. Donaldson HMRC will be appealing because it was it was found purely on a technicality that HMRC failed to issue a notice in advance of applying the daily penalties and the tribunal decided that the legislation should be read on a purposive basis which where the the purpose of the penalties was to incentivize taxpayers compliance rather than to punish non-compliance so so really they address the fundamental way in which HMRC have decided to apply these penalties so I mean on based on what you've said I'm sure there are a number of practitioners out there who you know will have clients in this position and I the case is being widely publicized I know and clients will be aware of it and clients will be wanting to talk to their advisor about it and get some advice on what they can do yeah and we what we've done is we I've prepared a news item explaining the the basis on which you can appeal and prepare to pro forma let at vitaly guidance so that advisors can simply send off an appeal on behalf of their their clients once they've received approval to to do so and with HMRC appealing against the Donaldson case we will be following this and updating it as soon as possible well thanks for that been my pleasure so we've had a brief description of the robert morgan case and how it might be important to you and your clients if you'd like to find out a little bit more about the case then you can download a complimentary copy of a news item which gives you more detail and also to find out how you can get a free trial of Tolley guidance to find out what it can do for your practice I hope you found this useful thank you very much