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.
- Not a question but made my day 689 15
- Does reputation of a tax agent affect likelihood of a HMRC audit 311 4
- Family property company Benefit in Kind and ATED issues 112 1
- PPR ELECTION 341 10
- Microsoft One Drive 281 8
- Capital Allowances for cars/hackney carriages 120 2
- Travel expenses for director - flight 391 4
- Invoices 172 1
- Accounts Package 309 8
- Question about VAT Group Registration 141 1
- Employee leaving mid month and Payroll Manager 655 18
- Reclaim VAT charged by US company 276 3
- Repayment of Share Capital 416 8
- VAT on property 157 1
- To make a claim against my PI insurer 322 4
- Late night meals self employed 387 2
- Auto enrolment pension scheme set up 431 9
- EBT Self Assessment Return 279 1
- Is there a way around new dividend tax changes? 2,926 18
- Vat Exemption moving to a partnership 150 1
- NHS finance professionals 577
- Auto Enrolment and Foreign employers 383
- Foreign Pension Contribution 354
- Fines for late submission of the RDR 334
- Employee's statement of sickness (SC2) form - no longer available as downloadable pdf 315
- vat gross profit percentage margins 313
- Pre Season Invoice dated September how do you treat the VAT as not due until May 16 290
- SWAT AML v Anti Money Laundering Compliance Plus (AMLCP) 258
- Thinning income 240
- Does pension term assurance count for unused relief purposes? 212