Special Relief ; is there a VAT equivalent ?

Special Relief ; is there a VAT equivalent ?

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Client had VAT Returns outstanding from Q7.06 (ie q/e 31.7.06) onwards.

We submitted returns for Q7.06, Q10.06 & Q1.07.

Revenue&C reply to the Q7.06 return was received : "The payment of £1181

will not be credited to your a/c or repaid .... we are not liable to repay any

amount paid where return was rendered more than 4 years after end of prescribed

acctg period in which assessment was made."

(note : Q7.06 vat per asst £1538 per return £357 gives £1181)

Similar replies to Q10.06 & Q1.07 returns have not been received.

Given the 4 year deadline for all returns up to Q7.09 has now passed and that the

amounts assessed for all quarters seems higher than what a return would show,

is there any way at all to get the assessment amounts replaced by return amounts ?

Thank you.

Replies (8)

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chips_at_mattersey
By Les Howard
11th Oct 2013 14:49

Yes and no.

I have known a taxpayer successfully adjust Returns and Assessments more than 4 years old. Although on occasions this can be hard to do.

I would argue on the grounds of fairness and equity, and see if HMRC will make necessary adjustments.

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By Anita Houlson
12th Oct 2013 15:00

Equitable Liability/Special Relief

I have a particular interest in HMRC being 'honest and fair'. Was there a legitmate reason for the delay, if so, then suggest that your client takes the issue to the Adjudicator if that does not work then ask your client to refer the issue the Parliamentary Ombudsman through his/her MP. Explain to HMRC that this is the course of action that your client is going to take. Ask them if they have at 'any time' waived the rule for a similar incident, ask for it in writiing! I am challenging the Ombudsman on 'time limits', when HMRC does not operate on an 'even playing field'. I would appreciate feedback on the outcome of this case. Are there any similar cases out there in relation to assessed VAT, I am quite happy to refer any examples to my MP. The more people that join the 'bandwagon' the more likely something will be done! Your client deserves this money back and my argument is that HMRC are sqeezing the time limits in their favour, the rules need to change! 

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By BobKnight
12th Oct 2013 19:06

VAT and ESC A19

I am new to Accounting Web so I hope this is in the right place.

I have a client who submitted quarterly VAT returns for the quarters 09/09 and 09/10.

The returns were correctly and accurately submitted and the correct payments made on time.

In September 2013 the client was advised that HMRC would carry out a compliance check for a period which included both of these returns.

HMRC have now written to my client advising "You have made errors when calculating the VAT due to HMRC" and have advised her that she now owes £3,733 additional tax.

My enquiries reveal that a few months after each of these returns were submitted HMRC wrote to my client saying that there was a credit on her account with HMRC and they repaid her £2,000 and £1,733.

It is clear to me that whoever keyed in the information from these returns misread the leading figure '2' and either read it as a £ sign (it looks NOTHING like a pound sign) or simply failed to key it in at all.  The error lead to the so called 'credits' on her account and the subsequent repayment.  The returns were completed correctly in all respects.

As these are errors made by HMRC and have only been notified 3 and 4 years after the event my client is very unhappy at suddenly finding she is being asked for such money. Is there a defence to this and do the conditions of Extra Statutory Concession A19 apply to VAT?

I would welcome any advice.  Thank you

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Replying to stepurhan:
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By ebenscro
14th Oct 2013 09:27

BobKnight, You shouldn't hijack other people's posts. Its easy enough, and more likely to get you answers, to do your own post. Ebenscro.

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By Anita Houlson
13th Oct 2013 00:00

HMRC Error

I don't know what other advice will be forthcoming but once again this is the fault of HMRC. It is an administrative error. It may be worth consulting a barrister , operating under the 'public access scheme', no solicitor required. Ask HMRC for detailed information on the 'errors' and tell them you are seeking legal advice, don't believe any of their excuses or explanations, get appropriate legal advice from a barrister trained in tax law.The public access scheme will provide a list of barristers to choose from, and from my own experience it proved worthwhile.Best of luck.

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By Anita Houlson
13th Oct 2013 09:57

HMRC Error

Have just remembered that when our farm accounts were VAT inspected some years ago the inspector asked if I wanted the good or the bad news first. Being new to doing the accounts I had claimed the VAT on a second hand car [bad news] but it was too far back for the inspector to do any thing about it [good news]. Have they changed the rules?

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By BobKnight
14th Oct 2013 17:34

Thank you for your comments Anita.

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By BobKnight
14th Oct 2013 17:35

ebenscro - hence my opening apologies.  I will find out how to set up my own.

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