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......
- GP - Do I have to provide tax advice 69 2
- Group Audits 103 1
- VAT Invoice 274 7
- VAT on sale of an Asset 134 1
- Cash in Hand 231 3
- Buy to let and capitak gain 221 5
- are receipts needed? 651 17
- SA302's anyone?? 639 18
- Charge for use of credit card - permitted 348 8
- High value residential property - SDLT 15% 180 1
- 2013/14 failure to submit end of year submission 367 12
- Busines software 217 5
- Goods Purchased for Rental 228 6
- Converting a barn for business use 196 2
- Sale of house with planning permission - tax free? 329 4
- Flat rate Vat Scheme & Vat on wholesale production of Cakes and other deserts 338 12
- HMRC overreaching its powers -again against a small surveying firm? 507 10
- Going to need a tax, insolvency and legal specialist I think 363 3
- Bookkeping software 748 7
- Clogged Losses 296 5
- Nil Rate Band Trust - index linked debt by way of charge over property 913
- International interest certificate 527
- NOVA 376
- Have we escaped Gift with Reservation of Benfit & Pre-owned asset charges? - Gift after benefit 341
- Management expenses for investment company 280
- Bonus Bonds 279
- Entertainer withholding tax in Australia 189
- Insolvency and whistle blowing 175
- EXACT ONLINE 174
- P11D benefit received by widow 171