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......
- VAT on Microsoft Office Accounting Professional 2009 177 1
- Surcharges on very late VAT 208 3
- Should I pass on my HMRC login 425 11
- If an invoice is sent and paid does a contract exist 257 10
- Using a Business broker to sell a clients Company.....??? 110 2
- Was I rude 799 20
- Need qualification back due to clients' banks needing my references 288 9
- Paint Manufacturer Flat Rate Scheme 214 8
- IRIS Open Books problem 291 1
- Incorporation - any tax advantage? 284 7
- Company overdue but wants to be struck off 198 6
- Non-compete agreement 185 1
- Expenses claim for non employee 200 1
- Any views 741 1
- IRIS Practice Management 147 2
- Non Registered trader selling to Malta 110 2
- Pre- trading Expenses 99 1
- Dividend payments and shareholdings 178 3
- Corporation tax due date confusion 309 4
- You cannot be Serious!!! 260 1
- Skandia using wrong address 1,485
- Nil Rate Band Trust - index linked debt by way of charge over property 823
- International interest certificate 448
- Stamp Duty on share for share exchange 422
- Sale of business 396
- NOVA 294
- farming-related R & D tax relief claims 207
- Bonus Bonds 179
- Management expenses for investment company 175
- Can Limited Company Buy Share of Rental Property? 168