HMRC PAYE Fiasco - FREE Helpline success

morgani

Just to let you all know that the free helpline set up by a group of accountants (myself included) over at UK Business Forums has had a successful case where nearly £2000 has been written off by HMRC.

Read full details here http://www.ukbusinessforums.co.uk/forums/showthread.php?t=180034

We believe this will now hopefully set a precedent for the majority of the 1.4m estimated people possibly having underpayments of tax through this HMRC blunder.

Don't forget you are all free to submit your underpayment scenarios for free help by:-

Calling the helpline 01480 718 418
Emailing checkmypaye@cheapaccounting.co.uk
or posting on the forum at UK Business Forums.

Mikeyorks

morgani wrote: »

We believe this will now hopefully set a precedent for the majority of the 1.4m estimated people possibly having underpayments of tax through this HMRC blunder.

In what way do you consider a single case establishes a precedent?

There have been dozens of cases posted on here. For the most part they consist of cases involving more than one income stream and where the people involved have ignored excessive personal allowances / failed to notify a 2nd job / pension. HMRC won't be giving those up.

morgani

It isn't necessarily setting a precedent I just stated 'hopefully for the majority'.

In respect to this in the majority of cases that we have dealt with HMRC have failed to act on information which they already knew about. For example most of those in contact with us have been in receipt of Incapacity Benefit. It is the responsibility of the DWP to notify HMRC if the recipient is liable to tax and then HMRC to act on this information. HMRC have failed to act within their own time scales in which case ESC A19 applies.

I'm sure there are cases when individuals have failed to notify of second jobs and other incomes but I'm sure the majority were not even aware they were in receipt of two personal allowances. The idea of the free helpline is to provide everyone with a fair way of tackling HMRC who seem to be adopting bully tactics and not following their own rules. Our experience has shown that letters are demanding payment immediately or before Christmas when HMRC have stated on their own website that payment will not be required until after 31 December 2010 when they will issue further guidance on how to pay.

Pennywise

Mikeyorks wrote: »

In what way do you consider a single case establishes a precedent?

There have been dozens of cases posted on here. For the most part they consist of cases involving more than one income stream and where the people involved have ignored excessive personal allowances / failed to notify a 2nd job / pension. HMRC won't be giving those up.

The ESC doesn't say it's the taxpayer who has to notify. A new employer "notifies" HMRC by sending in a P45 or P46 or even if they don't do that, HMRC are effectively notified once they receive the end of year P60. As regards state benefits, HMRC are usually notified by the relevant body. Just because the taxpayer hasn't notified HMRC themselves, doesn't mean that the ESC won't apply. It does seem the case that if a new source of income started in 07/8 or earlier and HMRC have received a P60 or other form of information, then the ESC does indeed leave it open to be applied and the tax written off. Of course, HMRC won't like it and will do their utmost to fob off the claimants, but they can't change the wording of the ESC (although they'll probably try) - I've certainly taken screen prints of the exact wording in case they change it and argue it always said something else - like they have done before!

BoGoF

What has to be remembered is that there are 2 conditions for ESCA19 to apply, the delay part and the 'reasonable belief' test for the taxpayer. Of course reasonable belief is open to interpretation but is it reasonable for someone who is receiving a taxable benefit to believe their tax affairs are in order?

starbucs

Morgani, Pennywise....you have been the best help I could have had.
I've sent my letter off to HMRC today....they want almost £500 as I've told in another thread. This is correct when I've checked it, but has been going on for at least 6 years without them picking up their mistake.
Watch this space........

morgani

BoGoF wrote: »

is it reasonable for someone who is receiving a taxable benefit to believe their tax affairs are in order?

Yes according to HMRC on Incapacity Benefit

As they know the details of the claim, the DWP is responsible for determining whether INCAPACITY BENEFIT is taxable and notifying the Revenue when a person starts to receive taxable benefit. If there is any doubt whether INCAPACITY BENEFIT is taxable, the person receiving the INCAPACITY BENEFIT should be asked to seek clarification from the DWP.

Source:
http://www.hmrc.gov.uk/manuals/eimanual/EIM76180.htm

morgani

starbucs wrote: »

Morgani, Pennywise....you have been the best help I could have had.
I've sent my letter off to HMRC today....they want almost £500 as I've told in another thread. This is correct when I've checked it, but has been going on for at least 6 years without them picking up their mistake.
Watch this space........

Glad that we can both be of help. Don't give up as with the case we won we had to keep appealing. The first response appears to be a computer generated letter as it is arriving within a week, which for this of use who deal with HMRC will know that it is just not normal practice for them to be that quick!:p

morgani

Just an update for you all.

We have now published information and directions on how to fight your case with HMRC with links to template letters. The group will still remain available to help with cases not falling into the mentioned scenarios or to help with calculations.

This can be found here http://www.ukbusinessforums.co.uk/forums/showthread.php?p=1415922#post1415922

Best of luck