Another HMRC story
Discussion
One of my suppliers came in today having landed a £100 fine for missing the end of January deadline for SA. Not a happy man.
In fact his accountant has submitted in July and in December the HMRC had refunded him £1200. He rang HMRC who wouldn't accept they had received a return at all and insisted on the £100 being paid, which was an offer my supplier gratiously (or not!) declined.
They then said that they would take him to court if he didn't pay, despite the fact he still had their cheque counterfoil. By now he is spitting feathers and offering to go to jail if need be, and the HMRC response is "see you in court".
So he rang another tax ofice and hey presto: two records are held for him. They then suggested he rang the original ofice back to tell them, to which his response was that perhaps they should do that, as it was HMRC's error after all. Eventuially they agreed to deal with it but declined to confirm it in writing, saying they would contact him if there was any problem!
Don't you love 'em.
The really stupid thing is - if they do, for some unknown resason, have you down on their system twice and therefore send out TWO Self Assessment tax returns, BOTH returns MUST be submitted.
However, if you can show that all your Self Assessment tax liabilities were covered by the return you DID submit and that all the liabilities were cleared by 31 January, then they CANNOT collect the £100 fine from you for the unsubmitted return as it is NOT legally due - even if the return goes in late.
The easiest way to satisfy them and get them to go away is ask for a duplicate of the return that you DIDN'T return, sign it on receipt but leave it completely blank - and then send it back to them.
However, if you can show that all your Self Assessment tax liabilities were covered by the return you DID submit and that all the liabilities were cleared by 31 January, then they CANNOT collect the £100 fine from you for the unsubmitted return as it is NOT legally due - even if the return goes in late.
The easiest way to satisfy them and get them to go away is ask for a duplicate of the return that you DIDN'T return, sign it on receipt but leave it completely blank - and then send it back to them.
They are getting worse, and more is to follow... they have no bloody idea how a small business works, or the trouble and hassle that they inflict, and they simply don’t care... they sit in their ivory towers and their arrogant attitude is that every small business is a tax collector and that they simply collect tax on their behalf... shame they don't think to pay them for doing this for them... massive changes are afoot in HMRC around the Lord Carter report and efiling etc, which will inevitably result in even more bureaucracy, more hassle and even more taxpayers money being pi**ed away!
The government say they are trying to make it easier for small business, well, someone needs to tell this to HMRC.
The government say they are trying to make it easier for small business, well, someone needs to tell this to HMRC.
Don't end up in court against them - they'll only be pursuing you for the debt, you can't dispute the facts of the case at that point.
This catches people out in their dealings with the CSA - they think they'll go to court and get it all sorted and then they're dismayed when the court simply orders them to pay.
Regarding not being paid to act as Her Majesty's Tax Collector - well, you are really. If you were to be paid for you trouble, where do you think the money would come from???
The problems with HMRC will get worse as many of the experienced backroom staff jobs are being made redundant. Most day to day business is dealt with in call centres now, and we all know what your average call centre person is like. Soon you'll be speaking to someone in India.
Edited to correct spelling.
This catches people out in their dealings with the CSA - they think they'll go to court and get it all sorted and then they're dismayed when the court simply orders them to pay.
Regarding not being paid to act as Her Majesty's Tax Collector - well, you are really. If you were to be paid for you trouble, where do you think the money would come from???
The problems with HMRC will get worse as many of the experienced backroom staff jobs are being made redundant. Most day to day business is dealt with in call centres now, and we all know what your average call centre person is like. Soon you'll be speaking to someone in India.
Edited to correct spelling.
Edited by deva link on Friday 2nd March 09:17
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