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."
- Any reasons for a dissolved company to comply with HMRC requesting Corporation Tax and Tax Returns 34 1
- Salary Sacrifice andy subsistence payments 255 7
- RBS advising client they don't want his business 2,328 13
- Auto-enrolment staging dates, letters etc 105 4
- VAT FRS for a Formula 2 Racing Driver 89 2
- Overdrawn directors loan account. 919 21
- Can you have two types of sales? Sales with VAT and Sale without VAT? 343 9
- Company Structure 262 2
- The importance of Grammar 2,039 58
- Who is responsible for goods values for customs clearance? 35 1
- Accountant Specialization. 75 1
- Student Loan Box in Year Repaid 198 3
- What is the best acounting software for online international retail business? 244 1
- Director Liability 225 4
- Finding mobile numbers for clients we have lost contact with 386 5
- Travel and Subsistence Expenses 227 2
- Freelance/Employee 486 13
- 2 companies, one payroll 292 9
- Goodwill and the Summer 2015 Budget 344 1
- Complicated situation with very old balances from previous accountant 671 14
- Any knowledge of salesorder.com 399
- Chart of account segments; Balance sheet vs P&L 361
- Could and would anyone here carry out a hot file review of some non statutory audit work please? 341
- Electric Car 274
- S222 Charge 233
- IP trans to holding company 176
- Taxable Benefit for Director? 167
- Corporation tax penalties and fines on the CT600 158
- Software to Deal with Amazon and Ebay Sales 156
- AIA 153