Compensation for HMRC errors
One of my clients has just received a £400 penalty notice for not filing a P35. They chuck these letters around like confetti at this time of year and a high percentage of them are always wrong. Needless to say he was not very pleased. The tone of his e-mail was distinctly stroppy. Thing is, I DID file his PAYE returns on time and have the confirmation e-mail from HMRC to prove it, dated 9 May. And it wasn't a test transmission. Also, looking at his PAYE record on the HMRC system, it confirms that they were submitted on 9 May.
I want compensation for this but as I understand it you can only claim for additional fees charged to your client as a result of their errors. I presume they then make the refund direct to the client and you have to bill them. So I will need to write (as his agent) with a copy of my invoice. Four questions here:
1) What is the procedure? Is a simple letter to the originating tax office sufficient?
2) What is the going rate? I was thinking £100 plus VAT (as the input tax is technically irrecoverable).
3) Can my client make an additional claim for "distress" caused by their error? I believe that's the magic word you have to use. If so, how much is realistic in a case like this?
4) How could this have happened? Why didn't their confirmation of submission "close" the PAYE account?
Shame I can't claim anything for my own distress after getting his e-mail. I see they don't send these letters to agents but only advise taxpayers to show them the notice. If they had sent it to me first I could have told them it was wrong. My client wants to keep 50% of the £100 fee as his share, but perhaps I can get 50% of his claim for distress if it is successful!
- Micro-entity accounts 29 1
- Cost of demolition of a shed - revenue or capital? 773 23
- Are you going to Tick and Bash on 21 May? 961 26
- US company hiring UK citizens in UK 75 1
- Related party disclosure 108 3
- Inflation and fees 1,273 23
- Company reconstruction 48 1
- Missing tax return 232 3
- Rolled up interest and late interest rules 206 6
- US LLC - anomaly in UK and US treatment 82 3
- Basic Tools and PAYE succession 124 1
- Advice please! 379 2
- VAT on new builds 144 3
- incorrect old p60 207 3
- CGT query on investment property sale 109 1
- Summarise excel cashbook by month 339 6
- Are accountants facing a doomsday scenario? 1,927 28
- Redundancy Pay 441 6
- Entertaining - am I missing something or is my client taking the mickey 724 6
- Sage Priority Support 124 2