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."
- Paid too much !! 62 1
- Gifting Shares to a Limited Company 49 1
- Anyone having problems with Taxfiler 404 16
- Company separation for Wholesale & Retail businesses 31 1
- Selling a VAT Qualifying vehicle at a loss 30 1
- Paying dividends to Ordinary shares with different nominal values 465 15
- I am 34 years old, am I too old to start a career in Accounting ? which is the best way to pursue it 140 5
- 2012 13 HMRC QUERY 729 11
- Sports Sponsorship 80 1
- New Shareholder and Purchase of Own Share 215 17
- Opt To Tax Refund 203 2
- Divorcing husband, both 50% owners of a Ltd business 158 6
- Is the CT61 return dead? 1,284 14
- Best software for small practice? 576 19
- How did you recalculate your payroll fees 1,247 21
- HMRC Enquiry 458 2
- Car purchase Lease or Buy 188 7
- Notifying HMRC when striking off company that never traded 284 4
- What would you do here, potential insolvency. 1,449 16
- Long/Short Period of Account 185 3
- Self employed and HMRC Worldwide Subsistence Rates 763
- Interest paid - do new rules affect Tax Credits? 452
- Market Invoice (P2P invoice discounting) tax treatment 271
- DTA tie-breaker issue 261
- Tax on internet ad sharing income 244
- Credit against UK NI for NI paid to EEC Countries 222
- CGT for NOn UK residents 216
- Apprenticeship Levy 195
- What are the tax implications of overseas sales through a UK based company? 190
- Capital Gains personal representatives 181