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......
- No PAYE Registration but need auto enrolment 511 12
- Incorporate to utilise dividend allowance next year? 477 9
- Entrepreneur relief and deduction of Amortisation of Goodwill Pre2002 49 2
- Transferring DLA between Directors 277 3
- Company restructure - Share valuation, ERS and PAYE 115 2
- FHLs and Entrepreneurs Relief 95 1
- Director owns 47% of shares in company A and 100% of shares in Company B. Is Company B a participator in Company A for S455 purposes? 179 1
- Stumped - IHT 319 5
- Creative Auto Enrolment 807 12
- HMRC now overriding SA bank repayment details on tax returns 1,367 35
- New LLP, basis of assessment and which boxes to complete? 112 3
- Rental losses on jointly owned property 247 4
- True Potential AE 272 2
- Closing down loss-making company 517 6
- CGT and primary residence 226 2
- Overpaid In Employers NI - RTI EYU for hundreds of employees 317 3
- Private doctors - Ltd company vs partnership 1,243 14
- VAT disaggregation 293 4
- Giving shares away 456 8
- Non-IR35 contractors and travel, since Autumn Statement 244 2