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SA -appeal against surcharge - tax liability 2005

Please help me in appealing against this surcharge,

I had an rental income/CGT enquiry relating to 2005, lasting 2 yrs, ended in 2010. An amount was determined + interest + penalty. about 37k.

I agreed to the final amount, and after declaration of my financial circumstances, HM agreed to a payment arrangement in late 2010, alongside a 3mthly phone review to declare my current circumstances or changes + interest.

I have continued those payments setup by standing order, in fact increased them by £100 pmth, and continued to phone in every 3mths aswell.

I have received a surcharge notice last mth, and appealed against it, based on the fact that a payment arrangement was agreed, and no further charges should apply to the final amount. The appeal has been declined that I do not have a 'reasonable excuse', I believe its trying to say the tax was due in 2005, and so it wasnt paid within the 30 days of due date.

But I cannot pay this large amount off, with interest being charged, and on top of that surcharges aswell. This will take forever.

I am ready to appeal again based on my financial circumstances, but need a professional advise, on if and how I may appeal for a successful outcome.

Please, please, someone advise me on getting this resolved. I have 30 days to appeal again.

Regards

Mo.

Replies

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By K81
26th Jun 2012 09:42

Generally, to get a surcharge vacated, your payment arrangements would need to be in place before the date that a surcharge would become due, ie your payments plan needs to be arranged within 28 days of the date the tax was due.

 

It would appear from your post that this is not the case & therefore HMRC are correct to levy the surcharge.

 

Sorry that this is not what you want to hear.

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By mshakil
05th Jul 2012 10:04

get surcharge waived

Hi,

Ive been told that the first surcharge prior to the payment arrangement is valid, and the new surcharge added recently i.e after the payment arrangement was in place is wrong. Does this now make sense to anyone ?

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26th Jun 2012 10:36

Sorry more questions than answers

1. How did the enquiry arise

2. When did it settle

3. Was this by letter of offer or by assessment

4. What tax was the penalty charged on

5. What tax was the surcharge charged on

6. When was the payment arrangement reached

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By mshakil
03rd Jul 2012 12:58

SA -surcharge appeal -more answers

Hi,

1. rental income + capital gains tax enquiry

2. setttled in late 2010.

3. finalised by way of assesment.

4. 2 surcharges: x1 6.6.10 prior to payment arrangement. x1 after payment arrangement.

5. payment arrangement reached 29/11/2011.

 

Regards

Shakil

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05th Jul 2012 13:06

 

 

If HMRC are telling that then I would go with it.

In your case the surcharges were due about 2 months after the assessments were issued and about 7 months after that date.

As the payment arrangement was made in late 2011 then technically both are due as under the payment arrangment any surcharges due AFTER the date of the arrangement are postponed pending satisfactory payment.

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By mshakil
09th Jul 2012 13:03

surcharges after payment arrangement agreed

Hi,

surcharges due AFTER the date of the arrangement are 'postponed pending satisfactory payment' ?

could someone explain what this simply means, if I am paying monthly by SO, and to pay off the full tax amount owed to HR, could take quite a few years, if my financial circumstances dont improve.

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By ACDWebb
09th Jul 2012 14:14

It means

keep to the payment schedule and it will be cancelled, otherwise it's due

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By mshakil
23rd Jul 2012 16:40

SA tax bill repayment - options?

Hi,

can anyone help with this please?

My current tax balance is £32k. I am paying £250 p/mth by standing order.

As part of my commitement to pay off the bill asap, I recently applied for a loan and have been accepted for £15k over 5 years @ £295 p/mth.

I offered the tax office the full amount of the £15k loan to reduce the bill by half immediately. But then I told them I couldnt continue both repayments, i.e the loan repayment of £295 p/mth + tax repayment of £250, and requested to put the standing order of £250 p/mth on hold til I can pay off the loan in 5yrs, and then reapply for another loan after the 5yrs, and pay off the remainder of the tax bill. They refused that option.

basically they are saying whatever amount is offered, the payments towards the tax have to be continous for the remainder of the balance, i.e no breaks, and the amount already agreed i.e £250 p/mth cannot be reduced either.

The only options I have been suggested is: 1. to continue paying £250 p/mth by SO or 2. pay off the full amount of £32k in 1 go.

Can anyone suggest another option, I could offer please ?

Regards

Mo.

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