We have been astonished as the number of P800T issued by HMRC in respect of years going back as far as 2006-07 to some of our clients and other individuals who have become clients following receipt of such. How did HMRC get it so wrong when issuing coding notices because lets face it this is the main reason why so many employed and/or retired individuals are now receiving so many demands of underpaid tax.
What also bugs me is that they can go back more than 4 years when clients are now restricted to 4 years to make claims... one set of rules for them and another for taxpayers.
But the worst thing is that we are having to fight really hard to get them to apply ESC A19. The latest rejection states:-
Reason for decision: Even though we did not use the information that we received from your client or a third party properly or on time, we cannot accept that they thought that their tax records were correct. This is because the tax that your client owes was large enough for them to notice." !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! As far as I am concern the amount owed is irrelevant and based on our client earnings it would not have been obvious to him that he might have not paid enough tax at source.
The original P800T sent by HMRC was grossly overstated as some bright spark did not capture the P11D beneficial loan benefit correctly and treated the loan as available all year when it was only given 2/3 of the way into the tax year. So we pointed this out to them and apply to have the balance of tax Written off under ESC A19. They subsequently amended the computations accepting they got it wrong (again!!) and ignored our appeal altogether. So we wrote to them again and this above is what they came up with.
Another case I came accross not ESC A19 related concerns a elderly client whose income less regular Gift aid payments keeps her just below the aged allowance limit. She had a tax bill of just £2.67 for 2011-12. I have asked them to take her out of self-assessment and they refused!!!!. It probably cost them more to process and recover such a small amount of tax and they let other get away with millions!!!!!!!!!!
Honestly I have just about enough with HMRC. They treat people with so much disrespect and contempt it make my blood boil...
Some heads need banging together......
- Investment from Friend 189 10
- Grammar, spelling and silly questions 934 39
- Receipt bank 348 8
- Pounds Shillings and Pence 637 24
- Trading lossess & non trading co & investment income 46 1
- Do we have to register for VAT? 487 10
- Self Assessment and P11D 156 4
- Director remuneration £1000 only in year. paye registration required? 343 4
- Company dividends 549 15
- Money laundering and can accountants be sued by clients if they make a report 192 5
- Directors Salary and Self Assessment (PAYE) 89 1
- Tax Penalty overreaction 2,181 15
- Two weeks grace on self assessment where repayment is due? 170 2
- TRONC scheme 106 1
- Advice on letting a client go ? 714 13
- Capital Gains Relief 165 5
- client can't/won't pay 1,615 29
- Identity check problem 1,273 13
- A Director of a Ltd Company let a general Manager run the company, and if anything goes wrong the general manager is responsible? 218 3
- Business Set up cost 116 1
- Form MR01 (Particulars of a charge) - does this need to be filed if you remortgage with the same lender? 881
- Underpaid VAT assessment and relation to SATR 582
- Did you realise Google will not patch android exploit ... 545
- Latest phishing scam 479
- Entrepreneurs' relief 427
- Cashback for opening business bank acct = trading income? 351
- Corporate LLP with 30 June Year end - How to record on SA800? 326
- Auto Enrolment Questions Answered 249
- Penalties- On Tax Returns (New Regime) 247
- Loan benefit after person ceases as director/employee 171