Classic example of incompetent HMRC enquiry

The aim of this post is to highlight just what jokers HMRC are these days. NEVER EVER assume HMRC are not talking utter drivel, there is every chance they are. With names and amounts changed, this is my reply to a self-assessment tax enquiry received a week ago today:

“Your letter of 26 January 2017 is deeply concerning. Having taken more than two years to process this tax return, your system appears to have made a number of fundamental errors and omissions.

[FONT=&quot]1. [/FONT]The name of the partnership given in your letter is “D Alum”. “Mr & Mrs Wood” and “Clyde Valley View” were the names of the two partnership businesses on the tax return I submitted to you. To the best of my knowledge my clients have never run a partnership as “D Alum” and neither of them has changed their name from “D Alum” to the names on their tax return.

[FONT=&quot]2. [/FONT]I am going to assume for the rest of this letter that “D Alum” in your letter refers to “Mr and Mrs Wood” on the submitted tax return. That is because my submission showed £5,950 of taxable profits under “Mr and Mrs Wood”. This is the same profit you show under “D Alum”.

[FONT=&quot]3. [/FONT]I enclose page 12 of SA14 for Mr. Wood as submitted. This clearly shows in box 17 that losses brought forward from earlier years of £2,987 were offset against the £2,987 profit.

[FONT=&quot]4. [/FONT]I also enclose page 6 and 7 of the submitted partnership tax return SA14. This shows that David Wood’s share of the loss on the bed and breakfast business which started in this tax year was £8,527.

[FONT=&quot]5. [/FONT]My final enclosure is page SP2 of the SA14 for Mr Wood which I submitted. In box 22 you can see that the £8,527 loss on the bed and breakfast was offset against Mr Wood’s other income from 2013-14.

In summary I believe the partnership tax return and the individual tax return for Mr Wood, which I submitted on 1 November 2014, were both complete and accurate at the time of submission. No new information has come to light in your letter or my review of the files to cause me to adjust any of the entries, so in my view that submission remains complete and accurate.

I believe all £11,514 of the discrepancy alluded to in your letter of 26 January 2017 has arisen from HMRC failing to correctly process these tax returns:
· £2,987 from not taking into account the box 17 losses as per point 3 above.
· £8,527 from not properly processing the share of loss from the bed and breakfast business, as per points 4 and 5 above.”


Hideous, hideous muddles from right Charlies. In fact calling HMRC a bunch of Charlies is a gross insult to inadequate Charlies everywhere.
Hideous Muddles from Right Charlies

Comments

  • Cool story bro.
  • My best example is where I was assessed on unpaid tax on a cash ISA. To be fair it may have been caused by duff info supplied to them by Halifax, who are equally incompetent IMHO.
    Ethical moneysaver
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    I had similar many years ago, so the incompetence goes a long way back, they wrote to me in very threatening terms about undeclared interest they accused me of hiding yet wouldn't reveal the source of my (apparently) untold wealth I was unaware of.

    Turned out to be much less than a pounds interest in an old post office account I'd forgotten about (had about a tenner in it) that was in any case tax exempt because that type of account was by definition tax exempt.
  • HMRC are not fit for purpose - they have been demanding money from me for supposedly overpaid Working Tax Credits, it got to the stage where my MP Nigel Adams and the director of the DWP and the minister in charge of HMRC were involved and told HMRC to stop this illegal harassment, at which point I received correspondence from both HMRC and the DWP stating I owed nothing.

    Two Years later I have received yet another threatening letter demanding thousands I do not owe, a threat to take deductions from my wages and the nightmare begins AGAIN.

    I have contacted both organisations innumerable times over Years inviting them to issue County Court proceedings but they never will as it will give me the forum and opportunity to expose what vermin these people are.

    I am saddened but not surprised these organisations act like nazis - but why are they not chasing George Osbourne, David Cameron or Samantha Cameron for their tax avoidance? (wer'e all in this together..)
  • lincroft1710
    lincroft1710 Posts: 17,618 Forumite
    Photogenic Name Dropper First Anniversary First Post
    - but why are they not chasing George Osbourne, David Cameron or Samantha Cameron for their tax avoidance? (wer'e all in this together..)

    Tax avoidance is not illegal.
    If you are querying your Council Tax band would you please state whether you are in England, Scotland or Wales
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