Restoring ATED Compliance While Claiming Available Exemptions

The Challenge

A client reached out to Stratos after receiving a notification from HMRC regarding their failure to file an Annual Tax on Enveloped Dwellings (ATED) return. Despite being eligible for relief under employee occupation, they had not submitted an exemption claim for the years ended 31/03/2016 to 31/03/2022.

HMRC informed the client that they owed significant penalties due to the late filing, and the client was required to pay £9,100 in penalties for failing to submit their ATED return on time. The client was unaware of the need to file the exemption claim by the 30th April each year to avoid such penalties. As per HMRC regulations, any late return by more than 3 months incurs a £10 daily penalty for up to 90 days.

The Solution

Stratos took immediate action to address the situation and provide the following solutions:

• We swiftly submitted the correct exemption claim for the relevant years, ensuring the client met the eligibility criteria for relief under employee occupation. This action helped to resolve the outstanding ATED obligations and ensured no further penalties were levied by HMRC.
• We educated the client about ATED filing deadlines and exemption claims to ensure that future returns are submitted on time and no penalties are incurred. Our team provided annual reminders to ensure compliance moving forward.

The Value

• The client’s exemption claims were properly filed, bringing them into compliance with HMRC’s ATED regulations, ensuring no further penalties.
• The client now fully understands their ATED filing obligations, and with our ongoing support, they can rest assured that future returns will be submitted accurately and on time, avoiding penalties in the future.