Anyone else getting these HMRC letters?

Anyone else getting these HMRC letters?

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We have received 2 letters from HMRC where they say there are figures missed off the 2013 SA Returns. It is the standard letter and explains the differences and how much more tax there is to pay.

The letter says that the client has been written to also and quotes no sections of legislation which gives them the power to do this. The letter to the client quotes Section 9A of TMA 1970 so it is obviously out of time. Our letter says that the client does not have to co-operate but it will reduce any penalties which may become due. On further checking, the same small pension omitted from the 2013 Return has been missed off 2014 and 2015 as we never knew about it.

Therefore if we tell the client that HMRC are out of time, they will just open an enquiry into the 2015 Return and then under discovery go back to 2013 and increase the penalty due.

Why don't HMRC just come clean - firstly they should send us a copy of the letter written to client and secondly why not just open the enquiry into 2015 in the first place?

be interested to hear if other accountants have had the same letters.

Replies (7)

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By User deleted
11th Feb 2016 11:39

Yes ...

... then they follow up with a 30% penalty!

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Replying to Wilson Philips:
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By colinhigginson
11th Feb 2016 16:53

Agreed

My thinking exactly. All looks like a trap to me.

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RLI
By lionofludesch
11th Feb 2016 17:12

Yes

I had one where a pension of about £2750 (no tax deducted) was paid.  Checked it, client said "oh aye, I did get that, should I have told you?", tax at 20% paid - strangely, they didn't bother adjusting his payments on account - no penalty mentioned.

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By gjlindsay
12th Feb 2016 11:53

maybe not

could you argue that they would have had the information for the pension from P60s at the time and therefore they couldn't open a discovery enquiry into 2013 assuming they are after the deadline for a normal enquiry.

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By Laurence52
12th Feb 2016 12:15

A client got no penalty

A few months ago I received a similar letter from HMRC regarding a client's 2013/14 return. This was a new client and the 2014/15 return was the first one I'd done for him. He had done the 2013/14 return and earlier years hilmself.

 

He had put the net amount of a pension on the return instead of the gross. He also had a small salary and he had put the gross and tax deducted for his pension in the employment section.

 

I checked these with his P60s and also got him to check earlier years. Those were alright. I contacted HMRC, made it clear that I hadn't been the agent for the 2013/14 return as I didn't want them thinking I made that sort of mistakes, and agreed with their findings.

 

Apart from the underpaid tax and interest there were no penalties. And an extra fee for myself.

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Replying to jon_griffey:
Red Leader
By Red Leader
12th Feb 2016 12:29

penalties?

My experience is that these "P60" enquiries are done in a very low key way. Penalties usually waived, after you push at the open door.

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By Ashok Patel12
12th Feb 2016 14:17

If your client have not disclosed the P60 information to you to reflect on his tax assessment.

You will need to see the P60, if the tax is deducted from the pension than the client may be due a refund if the client is not taxed than the tax is payable.

You will have to work this out and get in touch with HMRC stating what is due, hopefully HMRC may reduce the liability on fine for being quick in replying.

Your client does not have a choice as the client have not declared his income.

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