A few weeks ago (well, maybe 3 months) I received an amended tax calculation for a client, removing Class 2 NI from the calculation, incorrectly. As usual, I called the ADH, who refused to revert the amendment, claiming that the client has to register for Class 2 in order to change it. Now, notwithstanding that this potentially costs the exchequer money, I wasn't happy, and penned a letter of complaint.
I'm working from memory now, but TMA1970 S9ZB explicitely gives the taxpayer authority to object to an HMRC amendment, unconditionally.
In my complaint, I cited several FTT rulings (which I accept are not binding, and I acknowledged as much in the complaint) requiring "an officer of HMRC" to take actions, legislation which is repeated in TMA S9. I also referred directly to the legislation. As an addition, I called in to question the removal of Class 2, but not Class 4.
The officer who's desk this landed on called me up, and was very impressed with the complaint, so much that she would monitor it, but told me it would be referred to policy division.
Several weeks passed.
Yesterday, she called back, having received their respose. On the matter of Class 2 v Class 4, that has now been escalated to a tier 2 complaint.
On the matter of HMRC's right to make the amendment in the first place, and to make reverting their amendment contingent on some other action (something that the legislation does not provide for), policy have said that they are correct.
I disagree! However, this is not a decision appealable via usual channels, and would require judicial review. I don't own my own practice, but am employed, and the chances of getting my boss to fund the challenge are, shall we say, remote.
I'm confident that this could be won, so anyone want to take the challenge up? If anyone is, I'm happy to help.