More Revenue Incompetence

More Revenue Incompetence

Didn't find your answer?

I am getting to a point where I am at a loss how to proceed.

The outline is thus:

Prepared tax returns for client and his wife for donkeys years.

Wife's tax return submitted on paper to Bootle 1 as she usually has a repayment situation. She had no UTR and NI number was not quoted, I used the reference supplied by HMRC on the Return they sent out. 2007 had a small liability that I advised her of; and which she paid.

Wife then got a statement of account and tax demand even though she had paid the liability as advised by me. The statement showed a UTR, an NI number and employer reference, as well as employment income. The NI number was a J- prefix number, my client is 62 and UK born and bred and has not been employed for many years! The statement came from Northeast Metropolitan.

On investigation the NI number etc belongs to her daughter, who has the same initial and is under PAYE with no benefits etc (i.e. is tax neutral), but the income is a conglomeration of both their incomes. The liability arose as there were 2 incomes but only one personal allowance.

I have written to both offices, I have telephoned both offices, both on numerous occassions but still the files have not been separated.

I would happily give a morning of my time for free to get this sorted out but how? If we had a local office I would go there with all parties and thrash it out.

I am at the point where I think a formal complaint is in order, or should my client be involving her MP as this is gross incompetence of the highest order, and the fact it has been ongoing for 18 months, despite clear and concise information about the problem having been provided to HMRC on several occassions is beyond the pale.

And this is an A1 client who keeps immaculate records and pays the right fee promptly!

I await your learned views and comments with anticipation.

Replies (3)

Please login or register to join the discussion.

avatar
By User deleted
27th Jul 2009 16:48

Bill the Blighters
I would suggest that you seek recompense from the Revenue for your time in sorting this foul up out.

Thanks (0)
avatar
By Tax Angel
27th Jul 2009 18:08

There is a learning point here and a solution
If you do not use the exact paper SA tax return which HMRC sends to a client, it is not recommended that you submit a paper tax return in without a UTR being shown. The HMRC returns are bar-coded so even if they do not have a UTR shown, it can be linked to the UTR. The references which were on your return were probably PAYE ones rather than SA UTR. The return will initially then appear to be unsolicited and HMRC will attempt to 'match' records without checking with anyone. Your client has been a victim of the consequences. I know that this should not happen but sometimes prevention is better than cure. make sure you know the UTR and put it on the SA return.

Be warned: the same sort of thing can happen (as a fellow practitioner found to his cost), if you tippex out the name of one client on an official form and then use the form for another client. Although in these cases merging of records is unlikely.

I recommend that you contact a Client Relationship Manager or Agent Account Manager at HMRC, even if you are not in the areas mentioned at present. Explain situation to them and ask if they'll help even though you are out of area (if you are in their area so much the better). See Resolving problems or making complaints on this page for contact details: http://www.hmrc.gov.uk/agents/contacting-effective.htm#6 . I'm sure they'll help you.

Then send the bill for the hassle if you still feel that way inclined.

Thanks (0)
avatar
By alesha soba
27th Jul 2009 19:18

Similar problem with 2 different clients
Thorugh HMRC Agent Online services

My clients UTR and NI details corresponded with his tax record but unfortunately the name and address on the record belonged to some geezer in Birminham. I couldn't get an admission from HMRC but I'm pretty sure statements were sent to the brummie with my clients NI No. UTR and tax info.

This happened about a year ago and I was advised that HMRC was aware but that there was such a backlog it could take a while to resolve it. To this date my client's personal record (online 'About your client') is still locked but they do have his name right now. I took a printout at the time as proof just in case.

It's a bit scary

Thanks (0)