Form 11 & Fine question

[qwerty5]

A couple of years ago myself and a partner set up a company. At the time we got an accountant to do the paperwork and told them we didn't want to have to worry about the tax stuff. That's what we pay them for.
The company was to allow us to do some work for companies and be legit. Our normal day jobs are standard PAYE jobs.

The company has made shag all money. Just enough to tick over and pay for its running costs. I've never taken an income from it.

This year I'm moving my mortgage so my broker noticed that I have a company and asked for a form 11. I didn't know what that was so chased up my accountant and got them to submit one.

Yesterday I got a nice fine from Revenue saying I owe €1472 for late filing. So I've made €0 from the company and have to pay €1472 for the privilege.

I know this is my fault and responsibility. I'm just posting here to see if there's any options I have except pay up. Does anybody know how the late fee is calculated?

 

[Joe_90]

There is a 10% surcharge for late filing.

As a proprietary director the surcharge is applied before PAYE paid so I assume that you had a liability of €14k odd.

 

[Jon Snow]

Do you have a letter of engagement from your accountant indicating what services they are to provide you with?

You could express your dissatisfaction and look for a couple of years' work for free or deeply discounted, if he was engaged to file directors' IT returns and went asleep at the wheel.

But I'd assume he'd rather if you just left, rather than work for free, and how could you be sure he's not making a hames of other stuff too..?

So unless you want to look into the possibility of taking a small claims court action for whatever is the max amount they can adjudicate on, you don't have any other cost effective options...

 

[qwerty5]

I rang revenue this morning. They told me to put it in writing and submit through myAccount and they "may" review.

Joe_90 - Nope. I've taken no income from the company. There's only about a grand in the account. 100% of my income is PAYE.
Jon_Snow - Nope. No letter from the accountant either.

It's not worth chasing the accountant or suing. We only set up a company so we could do extra work and be legit in the hope that it would grow to be a real income. Would have been way less hassle and saved us a lot of money if we just did nixers.
If Revenues review produces nothing I'll just pay the fine and wind it up.

 

[Joe_90]

Joe_90 - Nope. I've taken no income from the company. There's only about a grand in the account. 100% of my income is PAYE.
.

The surcharge applies to your tax liability for the year. The fact that you did not take a salary is irrelevant for the computation of the surcharge.