The tax return season is in full swing and I generally feel quite pleased that I have got quite a few of the tax returns completed and filed. There’s a few more to go but I have a feeling I should be able to relax at Christmas and on my birthday. However, there’s always one. At least one…
The one who:
- does not pay me or HMRC on time,
- has the most complicated and twisted tax return and filing and payment history
- is earning the least amount of money but somehow due to past penalties (when she didn’t have an accountant because she thought she could do it herself) has ended up paying the most tax ever
- seriously not worth the money but I feel sorry for her (and she’s my yoga teacher) and so I keep doing her tax return.
Yesterday, when the client called me about her letter I was so angry with HMRC and I had made up a list of why I hate them. I’ve calmed down since. I still don’t understand why the penalties were shown as being cleared and is now back up again as being outstanding and with added interest. To be honest, I don’t really understand why they were cleared in the first place. I had thought they would go down but then it came up as being cleared so I took it as face value. They also sent repayments to the client not for the amount outstanding, it was less than that because of random adjustments. But why send out repayments when it’s not due? They are also claiming they sent a repayment before that for a larger amount but the client says she never received it.
At the moment, I’m genuinely not sure who to believe. I would normally go with HMRC as she wasn’t a client when the repayment was apparently sent, but I also can’t see why she would have had such a big repayment. And after saying for over a year that nothing was due, HMRC are now saying that the original amount is now due. When I spoke to someone at HMRC, today all he kept saying was a letter has gone out to you today explaining the amount outstanding so you can call back after you receive that letter or you can write to appeal it.
The worst thing is when I originally sent the amended tax return, the lady I spoke to was the most helpful and knowledgeable person I have ever spoken to at HMRC! Or so I thought. Maybe she wasn’t and they are correcting her mess and we’ve ended up with fines. I’m going to have to go through all the client’s paperwork that I have and work out whether what HMRC say she owes is true or whether I can appeal it. Back to my spreadsheets, after the school run.
Any thoughts, general help or anything would be appreciated.