Thanks again for your response.
Wife did sign a letter like that asking for surplus taxes to be transferred to husband's UTR account at the value at the date she paid the tax and asked that repayment supplement should not be paid, but instead they insisted on paying the repayment supplement before transferring the balance to husband's UTR account. I am still at a loss as to why HMRC will not suspend the 15% penalty as their compliance manuals say they will.
Thanks for your response. Husband is higher rate and wife basic rate. Nevertheless, she paid a few thousand pounds too much and HMRC refused to send this to husband's UTR account with same day value and instead insisted on adding 0.5% repayment supplement and charge husband the normal 3.25% thus HMRC make 2.75% from money they already held.
I haven't seen any advantageous terms in the Property Income Campaign. I have a situation of a wife declaring 100% of joint letting income rather than 50/50 and HMRC still want a non-postponed 15% penalty +interest on the husband's undeclared half without taking into account the tax the wife has over paid by declaring 100% rather than 50% .
I agree with "Open all hours" if taxpayers and their agents are going to be forced into MTD where income = £10,000 then everyone will be more vigilant in keeping track of their receipts, and expenditure claims will rise and the tax gap will widen. In my 40+ years in the profession I have never seen anybody under-declare their income, but when I query with them where are their expenses for stationery and postage, so many have said they don't bother claiming as "I get these in the supermarket with my groceries and don't bother checking through the 1/2 meter long till receipt for everything business related". If MTD for income tax comes in then there will not be so much as a paperclip unclaimed for with a resultant legal loss to the exchequer. As "Tornado" points out there will be Moonlighters, but MTD is not the solution to that problem. Instead the government should force us all to only pay small traders via their bank account and not by cash thus leaving an audit trail.
I happily used Drummohr for years before Iris bought it and then closed it down to offer an inferior product at an inflated price. I then moved to Taxcalc which is brilliant and reasonably priced. Taxcalc converted all my data for me so the transition was easy.
Anybody remember what happened to Drummohr when Iris bought it? The product does not now exist! and their prices for an alternative were extortionate. We had no alternative but to go elsewhere and happily Taxcalc came to the rescue. I agree with Manchester_man and ABS2.
A very sad day for the customer.
In all the property sales I have to calculate the CGT on they have land well in excess of 1/2 Hectare and it takes months for surveyors to produce a detailed report and valuations. It would be physically impossible to even have a vague idea of the figures in this case within 30 days.
This is another clear example of HMRC not having a clue about what happens in the real world.
It appears that I have been beaten to it as only a couple of weeks ago did I make a Freedom of Information request to ask how many penalties were issued unlawfully. In the main I was referring to HMRC's unlawful penalties for SA900 returns lodged early. This is now the 6th year that they have been breaking the law by issuing £100 penalties to trustees who file electronically on time. I never appeal as it is HMRC's error and not my client's so instead HMRC get a written complaint from me every time and then when I get a pathetic reply saying an unmeant "sorry" I take it to Tier 2. I then took a number of cases to the Ombudsman, but she rejected my application as it was made in bulk and said I would have to resubmit each case to her on an individual basis. That is what I am now having to do. This time last year I got just £150 compensation out of HMRC which naturally did not cover my costs for the many trusts affected. This year it is going to have to be rather more.
With 270,000 unlawful penalty notices at £100 a time is this not Fraud on an enormous scale? and should we be making a money laundering report in accordance with our statutory obligations?
Also as taxpayers ourselves I think we need to be concerned as to how long HMRC spend dealing with each appeal and/or complaint about each penalty notice. Let's say it takes them 15 minutes to process each, that's 67,500 hours which is 1,928 weeks and with a 46 week working year that is 42 person years. At say a £25,000 salary, that is a cost to us of £1,050,000. Then there's the postage, one stamp for the unlawful penalty and one for the agent's copy and then at least one for the reply to the appeal / complaint. Allowing for business discounts on postage, that is still £1-50 a time multiplied by £270,000 is £405,000. So there it is HMRC have wasted £1,455,000 of our money. It is about time the cost of their mistakes were taken from their pay, just like ours is for us running our own businesses.
It is no wonder that HMRC are pushing for MTD so that they can get 5 fines a year rather than just one. However, we in the profession must keep the complaints flowing into HMRC until they get it right so staffing costs in their complaints department will escalate
I agree with Ohgoodgodno.
Many of my trust clients have received unlawful £100 late tax return penalties when in fact their trust tax returns were filed early and electronically. This is now the 6th consecutive year that HMRC have issued these unlawful penalties and each year they say sorry and promise it will not happen again. If anybody wants proof that HMRC are not learning from their constant errors, this is it. I have all the evidence which has been sent to the Ombudsman. If a taxpayer made an identical error on his tax return for 6 consecutive years, HMRC would say that this was deliberate and there would be prosecution in court. Whilst we can claim some small amount to cover our fees, HMRC will never learn until their payroll is hit with a million pound fine. We need politicians to give the professional bodies the power to impose fines on the HMRC staff payroll to stop this unconscionable behaviour.
Also, what is the point in HMRC introducing an online complaints form if we agents cannot use it. It is surely agents that make the most complaints on behalf of taxpayers who have suffered HMRC's continuous errors.
Like Ohgoodgodno I am having to spend increasing amounts of my time making complaints; something I never had to do up to about 5 years ago.
Like the fiasco with NIC, MTD is another broken manifesto promise. I hope somebody in the public eye will be able to say this. To quote from page 19 (PDF version page 21) there is the title "We will cut red tape." MTD would introduce red tape at a level never previously seen by any former government or voter. HMRC and perhaps the Government have no idea of the damage this will cause to the whole economy and not just the self-employed and landlords.