When Previous Mistakes Become Your Problem
Choosing the right accountant can make all the difference. One of our new clients came to us after years of missed deadlines, unnecessary penalties and growing frustration.
Their previous accountant repeatedly missed important filing deadlines. As a result, the client received thousands of pounds in penalties from both HMRC and Companies House over several years.
However, the biggest issue was still to come.
A Business That Had Already Stopped Trading
When we reviewed the client’s records, we quickly spotted something that didn’t make sense.
The business had already ceased trading, yet the previous accountant continued submitting accounts as though it was still active. In reality, the only transactions on the business bank account were bank charges. Despite this, the accounts still showed trading activity.
Because of these submissions, HMRC believed the business was still operating. Consequently, penalties continued to arrive year after year.
Investigating the HMRC Penalties
Instead of accepting the penalties, we carried out a full review of the client’s records. We gathered clear evidence to show that the business had genuinely stopped trading.
Next, we contacted HMRC, explained the situation and presented our findings. We demonstrated that the business had not been trading and that the penalties should never have been issued.
Our work paid off. HMRC accepted our evidence and cancelled the penalties.
The Result
We successfully saved our client more than £2,000 in HMRC penalties.
More importantly, we gave them peace of mind. Their tax affairs were finally accurate, and they no longer had to worry about unfair penalties.
An Important Reminder
Many business owners believe that mistakes made by a previous accountant will automatically lead to penalties being cancelled. Unfortunately, that isn’t how the system works.
HMRC does not consider having a poor accountant to be a reasonable excuse for missing deadlines.
In this case, the outcome was different. The business had genuinely stopped trading, and we proved it with clear evidence. As a result, HMRC cancelled the penalties.
Need Help With HMRC Penalties?
If you’ve received penalties from HMRC or Companies House, don’t assume you have to pay them straight away.
Instead, let us review your situation. We’ll examine the facts, identify any issues and challenge incorrect decisions where appropriate.
At JDH Accountants & Business Advisers, we take the stress out of accounting. Whether you need help resolving HMRC penalties, correcting historic tax issues or getting your affairs back on track, our friendly team is here to help.