Any point appealing against surcharges?
A new client came to me last year needing tax returns for 2004-2010 as he had a rental property with tax owing for the last 6 years. The tax bill came to about £5,000. He couldn't afford to pay straight away so in the covering letter he offered to pay by monthly instalments and enclosed the first cheque. HMRC banked the cheque, issued the assessments but failed to respond to his request. He continued sending cheques each month.
3 months later the surcharges turned up. He appealed to HMRC on the grounds that they had failed to respond to correspondence and that he would have got a loan and paid the balance in full had he known his request had been ignored (I won't say turned down because they didn't even bother to answer). They rejected his appeal on the basis that no time to pay arrangement was in force. He now has to decide whether to take the appeal to the First Tier Tribunal.
Do we stand much chance here? Can their failure to respond to his request be treated as contributory negligence on their part or reasonable excuse on his part? I advised him to pay the balance in full immediately to lend credence to his claim that he would have done this straight away had he known, but I don't know whether he has or not.
Comments are welcome from those who have already been down this route or know the legal position. No comments please from anyone who doesn't know or is just guessing/assuming as that wouldn't be much help.
- CT/CIS offset 72 2
- Statutory accounts, current company address, or one that was correct at EOY? 140 4
- Trade name 133 3
- Musician - Allowable Travel expenses 113 1
- Funding Circle Servicing Fee 98 1
- New business - journal entries 285 20
- B2B vat in the EU 96 2
- Stamp duty on multiple property transaction 305 18
- Why should I retain membership? 2,627 45
- VAT on deposits 195 2
- VAT clearance for determining the correct rate to apply 118 1
- Annual tax investigation cover fee? 379 12
- option to tax 196 1
- Share of profits from building society 77 1
- sage vat journal 77 1
- Coding Notice 103 1
- Free invoicing software 140 2
- BTL property solely in wife's name - can she split rental income with husband? 552 15
- CIS deductions against the wrong UTR 252 7
- Looking for BIK v mileage comparison software 167 2
- Auto enrolment excuses 763
- Feedback on accounts production software for IFRS 702
- Add T&Cs to Sales Order in Sage 380
- Social investment tax relief 200
- Digita Hosted Software 192
- Call Centre Data Costs 189
- Buying goods in US and selling them to company in US 153
- Travel costs and contractors 143
- Problems with Sage 50 Payroll v21(2015) 132
- Certificates of tax deposit 128