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.
- Which tax returns can I submit? 173 5
- Cocaine anyone? 897 15
- SELLING A PROPERTY at LOSS/PROFIT - CAP GAINS ALLOWANCE 259 5
- Vat on new builds 65 1
- Using home as clients registered address 239 5
- VAT MOSS registration 98 1
- Anyone else still working this week? 471 15
- How much does the company pay 822 35
- HMRC property income enquiry 457 10
- Proof of identification 136 2
- When to provide S419 tax in the accounts 163 4
- Sole Trader change of accounting date 126 1
- Accounting for cash put into Ltd 309 5
- Childcare vouchers 375 8
- Is this a qualifying loan for interest deductions? 107 2
- New Enterprise Allowance 101 1
- VAT Notice 700/64 - claiming VAT on motor repairs 96 1
- two business from one premises 197 3
- VAT transfer on going concern on incorporation 76 1
- 10 Worst xmas presents for an accountant 380 4
- Accounting referance change & deficient accounts. 516
- corporate hierarchy 480
- Advice - 333
- Anyone had HMRC refusing to act on EPS database glitch? 281
- WWOOFers 270
- The booking.com con 257
- Art Gallery - Splitting a property between business and personal use 257
- Cocaine anyone? 238
- Tax liabilities in USA for warehoused products 233
- UK State pension paid in NZ 182