I think it predates the legislation which gave HMRC the formal power to do this - although previously there was an informal power under general care and management. The time limits are in any event long past.
It is precisely the taxpayer's responsibility (or maybe yours) to check tax codes issued are correct and are being operated by their employer.
If the employer was issued with the code and did not use it that might be another matter but then again if he had done the return on time he might not have ended up with the late payment penalty.
If a client prefers to miss the return deadline then they are consciously choosing to get into just this situation. Had he done his return earlier in the year then he would at least have had warning of the tax bill to come with time to get the funds together.
Your client also needs to be aware that strictly you cannot appeal a late payment penalty until the tax has actually been paid - since the reasonable excuse covers the period from the payment date to the date it is actually paid.
There is an article on the UK debt management office which tells you to contact the above. I cannot persuade Aweb to let me cut and paste the link to the page but I am sure you can find it. Scroll some way down to find the old war loan stock.
if the mother lacks mental capacity then I think you are stuck whatever. Even if there is a power of attorney the person holding that has to be sure they are acting in her best interests - it is a moot point if that extends to complex IHT planning.
Gifts may be fine so long as if challenged you could point to some history of such or even intention (I don't see HMRC ever making an issue of this unless something exceptional about the case).
Moral of story is for C - do some IHT planning himself now and keep up to date. Maybe do DoV for his children to extent he does now stand to inherit.
if you are in England is whether you could argue that by virtue of the expenditure the son acquired some beneficial interest in the property
This is quite an involved area and he would be well advised to talk to a land lawyer - but it can work as a line of argument and might mitigate the gain to some extent.
My answers
I think it predates the legislation which gave HMRC the formal power to do this - although previously there was an informal power under general care and management. The time limits are in any event long past.
Thanks to all. These were pretty much the conclusions I had reached especially the last re advice to all reaching a certain age.
Much appreciated.
it has evolved
I think the original concept was around letting people stay in your spare room but now short term lets/holiday lets are advertised through the site.
Thank you all
Much appreciated.
not a hope?
It is precisely the taxpayer's responsibility (or maybe yours) to check tax codes issued are correct and are being operated by their employer.
If the employer was issued with the code and did not use it that might be another matter but then again if he had done the return on time he might not have ended up with the late payment penalty.
If a client prefers to miss the return deadline then they are consciously choosing to get into just this situation. Had he done his return earlier in the year then he would at least have had warning of the tax bill to come with time to get the funds together.
Your client also needs to be aware that strictly you cannot appeal a late payment penalty until the tax has actually been paid - since the reasonable excuse covers the period from the payment date to the date it is actually paid.
£33,000 of losses
so what is her marginal rate of tax?
20% - so might save 6.6k
40% - twice that
and how much are fees and the costs associated with the transfers going to be? and some sort of figure for the risk of HMRC enquiry?
Is it really going to be worth doing?
Computershare?
There is an article on the UK debt management office which tells you to contact the above. I cannot persuade Aweb to let me cut and paste the link to the page but I am sure you can find it. Scroll some way down to find the old war loan stock.
Mother
if the mother lacks mental capacity then I think you are stuck whatever. Even if there is a power of attorney the person holding that has to be sure they are acting in her best interests - it is a moot point if that extends to complex IHT planning.
Gifts may be fine so long as if challenged you could point to some history of such or even intention (I don't see HMRC ever making an issue of this unless something exceptional about the case).
Moral of story is for C - do some IHT planning himself now and keep up to date. Maybe do DoV for his children to extent he does now stand to inherit.
another option
if you are in England is whether you could argue that by virtue of the expenditure the son acquired some beneficial interest in the property
This is quite an involved area and he would be well advised to talk to a land lawyer - but it can work as a line of argument and might mitigate the gain to some extent.
JR challenges a decision
so it is the latter date.
He will of course need legal advice and my understanding is that JR is an expensive process.