Tax Enquiry - Inspector Error

Tax Enquiry - Inspector Error

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Dear All,

I have come across client who dealt with tax inquiry by himself inquiry was concluded before he approached me.

I requested HMRC to consider late appeal based on the reasonable excuse which was turn down and they referred me to contact tribunal if late appeal needs to be considered. 

Whilst going through paper work for the assessments I come across bank deposit summary been made by inspector and about 40% of them reflect a comment PAYE.

In raising assessment I now note that the all deposits been treated as self-employment and client been penalized on prompted disclosure basis and failure to notify to HMRC for self-employment at correct time despite being employed. 

No deduction been applied for PAYE tax that might already have been paid.

Any one come across something like this before?  any suggestions on best way to move forward? should I talk to inspector and notify him with the error that may allow the case to re-open / re-assesed

Will appreciate any comments

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By ver1tate
25th Jan 2015 00:29

Tax Enquiry - Inspector Error

Contact agents helpline.

I was acting on behalf of a client who was being 'hounded' by a very determined tax inspector who would not allow certain claims, which as far as I could see were perfectly justified in my interpretation of the relevant tax law. But as it is difficult at times to be 100% positive about this, due to the nuances of the English language, I telephoned the agents helpline and was put through to the technical department who after some time researching, contacted me next day to confirm I was correct.I have advised the inspector of this, but so far he has not commented, which is why I cannot be more specific on the details.

But to lighten up the subject, today I had a novel experience and would ask if anyone has had one similar. Some time ago I took on a new client who had been employed for part of the year and being taxed under PAYE. As it was his first year under S/E I got him a tax rebate as his expenses at the outset were fairly large and income low. He came in again this year, late as clients tend to be, and I explained that he would not get a tax rebate this year even though it looked as if his expenses would be greater than his income, but any losses could be carried forward. His next statement floored me. 'But will I still have to pay you?' Methinks he may be loooking for a new acountant very soon.

 

 

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ghm
By TaxTeddy
25th Jan 2015 11:23

PAYE tax that might already have been paid

Might. Does the inspector have better info?

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