Interventions

Interventions

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More a news item than a question really.

Got our first 'intervention' through this morning.

Addressed to a client company who are property developers, text reads:

'One of the roles of HMRC is help customers get their tax returns right, so that they pay the right amount of tax, or receive the right benefits.

'We are testing new ways of working with customers which we believe will be less time consuming and less complicated than other procedures we use. Your participation in this trial is voluntary and this is not a notice of intention to enquire under our existing formal powers.

'We feel that these new approaches will help customers to deal with any mistakes quickly and get their tax right now and for the future.

'Our records show you are a Property Developer. In our experience Property Developers often make mistakes in the operation of Pay As You Earn (PAYE) on payments to casual labourers and staff on short-term contracts.

'You can use the HMRC website to find out how to deal with these items correctly for tax purposes. You may find it useful to usethe following site navigation:

'www.hmrc.ov.uk/guidance/cwg2-chapter4.pdf

'In addition, if you have any queries of a general nature, you may wish to contact the Employer Helpline on 0845 7143 143.

'Please check your records to make sure you are confident that you are dealing with these issues correctly and return reply slip back to me by 04 August 2006. If you are uncertain about anything then please use this opportunity to let us know so that we can work with you to resolve any problems and help get your tax returns right.'

The reply slip goes on:

'I have considered the issues outlined in your letter of 14 July and can advise that (please tick as appropriate);

'1. I am satisfied that the treatment of these issues is correct.

'2. I'm not sure my treatment of some of these issues is correct. I would like some help, please contact me.

'3. I think I have made a mistake and I would like to talk to someone, please contact me.

'If options 2 or 3 apply, please the following:

'My telephone number is

'Briefly the areas that I need help with / may have made a mistake in are:

'Signed ..................................................................
'Date
'Position in Company'

The covering agent letter said:

'You may be aware that we are contacting some of our customers to test new ways of working.

'For more information about this, refer to the:

'- press release dated 10 July -Government News Network (www.gnn.gov.uk) reference 135392P

'-Consultation Document HMRC the Taxpayer: Modernising Powers, Deterrents and Safeguards issued in March 200 which can be accessed at http://www.hmrc.gov.uk/about/powers-appeal.htm

'Your client has been selected for one of these trials and we would welcome their operation, which will be on a voluntary basis.

'I have written to your client and encl a copy for your file.'

My observations:

1. Sent for our file only, i.e. agent is not invited to help / reply

2. No space for feedback about whether the new way of working is helpful or not

3. Clearly going for old favourites like status.

4. Not looking at their files first, if they did then they would know that the company is a property developer but is a SPV for one site, and makes one single payment to a large building contractor for all services

5. Issuing office is well outside of area where PAYE scheme / CT file is based, but the letter purports to come from an ordinary tax office not a special unit.

Replies (3)

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By Paula Sparrow
17th Jul 2006 13:42

Has the Inspector packed a rod...?
because from the sound of it, these "interventions" are yet another fishing trip.

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By Paula Sparrow
21st Jul 2006 12:10

Farce....!
Had an intervention letter in this morning. Suggesting rental income has been missed off a partnership Return for 2004. They will be ringing the office (they say this office, so I hope that's what they mean) next Thursday between 10 and 12.

a) I would have thought 2004 out of bounds for this sort of operation;
b) Why is it relevant that a Partnership has missed the income off it's return? If they were looking at the individual partners, I could understand where they were coming from;
c) There is no mention of rental income anywhere in the accounts for the last xxx years, so why suddenly think there is some? We have no reason to doubt that the clients have declared all their income.

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By User deleted
17th Jul 2006 14:01

Think of the trees!
We know you signed a self assessment return but can you just sign another piece of paper as well please so we can be sure.

Marvellous - how many people are actually going to say 'you know what? might not have the right figures there'?

Reminds of the card you have to sign to get into the US where you have to tell them whether you are a terrorist or not!

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