HMRC Bad-mouthing Accountants
Our client, a typical subbie on CIS, gets a compliance check. The income declared on his SATR is short by around £9k according to the CIS information HMRC hold.
Client shrugs and suggests that his contractor didn't give him all his CIS statements. We tell client that, regardless, the tax is still properly due but that we will write to HMRC near the end of the 30 day period in order to put off the inevitable bill and payment due date. Client accepts this and is content that he will have, in effect, a couple of months to find the money.
(As it happens, we also got a few quid knocked off as HMRC had to accept they'd messed up in not adding up their schedule properly ... every little helps.)
We also write to client telling him to expect a tax demand of circa £700.
HMRC send revised calcs showing less than £650. Cool.
A few days later the now very irate client phones up, livid that he's had a "£700 fine" and has evidently spoken directly to HMRC who have told him that as his agent, his accountant "had access to the CIS information and so should have known how much income had been earned and tax deducted". In the few words I got in edgeways I explained that we prepare the accounts and return in good faith based on the information he gives us, but am wasting my breath as the client slams the phone down.
How bl**dy dare they (HMRC that is)!!!
Have any other colleagues experienced this bad-mouthing of their work by those shining examples of professionalism and precision at HMRC?
Do we have to write to HMRC routinely now to obtain the CIS info on each of our subbie clients every May/June? When we've done this on odd occasions in the past the responses have ranged from helpful schedules to "Sorry, no. It's your client's responsibility to retain all paperwork."
- Share swap 398 14
- Paint Manufacturer Flat Rate Scheme 308 14
- Deduction from net or gross pay? 135 3
- Check my logic on this please? 215 1
- VAT Margin Scheme for Second Hand Watches 62 2
- VAT reports on trade debtors and trade creditors 219 6
- Late P45 193 5
- Know it alls (who don't) 530 13
- How to account fot Cross-border vat. 166 3
- Company overdue but wants to be struck off 423 13
- CIC accounts submission 88 3
- A change from the old Q v NQ debate 593 20
- Cleaners wages at small church -PAYE or self employed ? 438 9
- Associated companies - CT small profits relief 263 11
- Limited Company - Personal Bank Account 2,506 44
- What does it mean?? 480 12
- Should I pass on my HMRC login 1,125 13
- RTI error - two of the same employer - what to do 240 4
- VAT & Landlords 221 6
- Make an adjustment to profits chargeable to class 4 nic 116 2
- Skandia using wrong address 1,564
- Nil Rate Band Trust - index linked debt by way of charge over property 863
- International interest certificate 475
- NOVA 332
- Subby expenses subject to tax & NI? 247
- Can Limited Company Buy Share of Rental Property? 240
- Management expenses for investment company 223
- Bonus Bonds 216
- Have we escaped Gift with Reservation of Benfit & Pre-owned asset charges? - Gift after benefit 206
- Help with tax codes on Sage 161