I have recived a copy of a letter from HMRC that has been sent to a client. This consists of a repayment questionaire asking the client how their tax return was filed. Was this online using HMRC software by giving their login details to another person to do it, asking for the name and address of the person. Were they satified that the figures were accurate, were they asked for records, did they sign the return, were they charged a % or flat fee etc, who the payment went to, relationship etc etc. It then goes on to ask for ID to be sent along with all payment deduction statements and receipts and contractors worked for. The worst part is that HMRC have removed the credit and put the client in debt with them until they send back all the relevent proof etc and they have done this for 3 tax years. We as the agent have not been asked to respond to the enquirey but the client. What happend to the old way of doing enquireys? The clients repayments were not large about £4000 over the 3 years. Have any others received letters like this from HMRC? I have never seen this type of enquirey letter before, why cut us out? They know we did the return so I don't see the reason for this. Maybe they are trying to catch the people who are not registered with HMRC as an agent, the type who go around offering big refunds with no basis in truth of the figures entered or who also don't declare they are in business and just pocket the high fees for false repayment claims. Any answers?
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Is the client a CIS subcontractor? I wonder if it is a letter only directed to subbies.
Does the letter say it is opening an enquiry , and if so, does it state the legislation the Inspector is using?
Well that’s one way to get around the protections for taxpayers in the Taxes Act. I presume they are technically out of time to raise an enquiry into 2016 return in the basis that it was filed before the deadline of 31 January 2017? The questions also appear to doubt the integrity of the Agent plus ask questions that are none of HMRC’s business. I wonder what the Professional Institutes might make of this.
Complain to Jim Harra, HMRC's number 2, asking him to confirm the legislation underpinning the approach and that this style of approach is sanctioned by departmental policy department.
I've a client who has received this letter. He is a surgeon (so NOT CIS) has a tax bill this year but POA were more than required by around £30K.
What happened with your client?