Tax Reclac, 07/08 incorrect - Can we claim expenses against the inland revenue

DarkConvict

Hi,

Very brief question.

My mom has received a tax recalculation for the year 07/08, stating over £900 was owed. I know this was wrong straight away but it took 3 hours to find all the paperwork to prove it, and so I could photocopy the P60. Also about 8 phone calls to the tax office due to been busy and getting disconnected to be told to send the problem in writing.

The problem was quite simple, they claimed my mom had been paid a year of state pension, even through she was not of state pensionable age.

The amount of tax owed is only £83 after working it all out, and that is written off under the new ruling of tax underpayments under £300 are written off. Confirmed by the phone call when she got through to the office.

Are we allowed to claim expenses for the time it has taken to find the paperwork, and the cost of letters and phone calls made to the tax office?

dori2o

DarkConvict wrote: »

Hi,

Very brief question.

My mom has received a tax recalculation for the year 07/08, stating over £900 was owed. I know this was wrong straight away but it took 3 hours to find all the paperwork to prove it, and so I could photocopy the P60. Also about 8 phone calls to the tax office due to been busy and getting disconnected to be told to send the problem in writing.

The problem was quite simple, they claimed my mom had been paid a year of state pension, even through she was not of state pensionable age.

The amount of tax owed is only £83 after working it all out, and that is written off under the new ruling of tax underpayments under £300 are written off. Confirmed by the phone call when she got through to the office.

Are we allowed to claim expenses for the time it has taken to find the paperwork, and the cost of letters and phone calls made to the tax office?

No........

DarkConvict

Fair enough, just wondered. When BT wasted my time before for 3 failed line installations, they got a bill for close on £300 but they settled at ~£200. Its just that it costs us time and money to resolve a matter that should never have arisen.

property.advert

I'm not sure you cannot claim against the IR. I know of a very different case which went to court recently and which resulted in HMRC paying compensation and accountancy charges. However, the principle must remain that you can charge.

Pennywise

Have a look at the HMRC webpage re complaints and putting things right. The standard response of front-line HMRC staff is to say no compensation is due, but the reality is far different when an appeal is made and a more senior HMRC officer reviews the original "fob off". You won't get anything for your time, but you may well get a contribution towards your "costs", i.e. telephone bill, but you will need to show that you incurred those extra costs, i.e. itemised phone bill, so it's whether you want to bother with a relatively trifling amount that is the key here.

http://www.hmrc.gov.uk/complaints-appeals/how-to-complain/make-complaint.htm#4

"Putting things right

If we've done something wrong, we will apologise, explain what happened and put things right as quickly as we can.

We will consider refunding you for any reasonable costs directly caused by our mistakes or unreasonable delays, such as:
postage
phone calls
professional fees

You will need to tell us about these costs as soon as you can and keep any receipts as we may ask to see them.

If you think our actions have affected you particularly badly, causing you worry or distress, tell us straight away. In some cases we may be able to make a small payment to acknowledge this and apologise."

dori2o

Pennywise wrote: »

Have a look at the HMRC webpage re complaints and putting things right. The standard response of front-line HMRC staff is to say no compensation is due, but the reality is far different when an appeal is made and a more senior HMRC officer reviews the original "fob off". You won't get anything for your time, but you may well get a contribution towards your "costs", i.e. telephone bill, but you will need to show that you incurred those extra costs, i.e. itemised phone bill, so it's whether you want to bother with a relatively trifling amount that is the key here.

http://www.hmrc.gov.uk/complaints-appeals/how-to-complain/make-complaint.htm#4

"Putting things right

If we've done something wrong, we will apologise, explain what happened and put things right as quickly as we can.

We will consider refunding you for any reasonable costs directly caused by our mistakes or unreasonable delays, such as:
postage
phone calls
professional fees

You will need to tell us about these costs as soon as you can and keep any receipts as we may ask to see them.

If you think our actions have affected you particularly badly, causing you worry or distress, tell us straight away. In some cases we may be able to make a small payment to acknowledge this and apologise."

I would agree if this case had been one of many long calls, many unanswered letters and a lot of messing about.

It seems to me to be the case of 1 answered phone call and maybe 1 letter which has been dealt with in a reasonably quick timescale and the actual underpayment written off for being below the 'temporary' limit for underpayments which has been increased to £300.

Although a mistake has been made with regards to the state pension detail, 1 letter and 1 answered phone call would not seem to be too much of a hassle.

However,k the OP is free to write in and see what the opinions of the complaints officer is. It will afterall depend on which side of the bed he got out of that day.

John_Pierpoint

Having read through this thread, the following thought has occurred to me:

The mission of HMRC is to "extract the maximum number of feathers with the minimum of squawking [from us the tax paying geese]"

This way the geese will be kept fat and thus "Ready willing and able" to participate in the matter of feather extraction.

Judging from the steady stream of complaints (that really should be about the complexity and arbitrary nature of tax as well as HMRC's ability to deal with it) HMRC is failing in its mission.

Like parts of the police service we seem to be moving from an atmosphere of "our police force are wonderful" to riot shields and kettling.

Any prizes for simplifying the system come this week's budget? Don't hold your breath.

ceeforcat

At 3.53 in the morning John that is very profound indeed? The prospect of combining NIC and PAYE tax as rumoured in the press looks interesting.

DarkConvict

What gets me is there is the "office of tax simplification". Most of the time is fairly simple, but when its not its a nightmare and its not helped by the fact tax codes/laws not taught in schools.

Thanks for all your comments.

Thankfully this is a simple case, its just annoying I have to spend the few hours I get to myself sorting out tax affairs that aren't seriously wrong like claimed. It stressed her out a bit until I quickly spotted the mistake, the issue is the time it takes to find paperwork and submit a detailed response.

taxing

DarkConvict wrote: »

What gets me is there is the "office of tax simplification". Most of the time is fairly simple, but when its not its a nightmare and its not helped by the fact tax codes/laws not taught in schools.

Thanks for all your comments.

Thankfully this is a simple case, its just annoying I have to spend the few hours I get to myself sorting out tax affairs that aren't seriously wrong like claimed. It stressed her out a bit until I quickly spotted the mistake, the issue is the time it takes to find paperwork and submit a detailed response.

Follow the advice and make a complaint coupled with a claim for compensation to cover the inconvienence and the not inconsiderable upset the matter caused to your mother.

It should only be one (more) letter from you - the amount may not be huge but it might make your mum feel better and reassure her that she hadn't done anything wrong.

I believe the link etc was given in an earlier post - go for it!

Regards.