MSE News: 500,000 get tax payment extension as HMRC runs out of paper

Bandraggle

no_choice_now wrote: »

"An HMRC spokesman says: 'This in no way prevents the accurate payment of tax and no-one will be out of pocket as a result. Account information can be viewed online so it isn't necessary to wait for a paper statement.' "

What a load of horse dung. This statement is an invoice and it's unlawful to demand a payment without an invoice. Invoices can be disguised and called many things, including a "statement".

Having the internet does not negate common law and the precedents, customs and lawful codes which our entire legal system is based on. Without an actual instrument how can there possibly be an obligation?

In life, a statement and invoice are usually very different things. A supplier will invoice sales and send a seperate statement of account.

The legal obligation to make a payment on accounts stands under S59A Taxes Management Act 1970. No 'invoice' is required.

G'Meister

3% a year interest if you can't pay on time? I'm not self-employed, but if I was I'd rather pay the 3% per annum rather than cough up the balance; most small businesses have outstanding debts upon which they're paying a higher rate of interest, no? Or is it not as straightforward as that?

Former_MSE_Guy

Hi folks,
Quick update on this. HMRC now says 500,000 affected so we've altered the story accordingly.

System

Al_Ross

My wife phoned up today as she hadn't received her July bill,was told the amount due and was told it had to be paid before the end of July or face penalties.

He told my wife too late to post now but could make a payment on line or at a bank,but would need her reference number(which is not on her last bill)he would not give it over the phone but will post it - so she should receive that in 3 months then!

xpf

In reality, this will be down to an outside body that has been contracted to do the printing work. HMRC will not print off these invoices/statements on desktop office printer!.

Someone made a monumental !!!!-up and will be paying the price (more than likely) when it's time to re-tender for the contract.

SallyG

http://www.financialadvisor.co.uk/news/tax/law-firm-warns-taxpayers-on-hmrc-fines-1313/

The FT reports that courts are supporting people who have relied on advice from the HMRC helpline - more and more advice on complex topics is done on the hoof over the phone , not by email - advice often varies considerably between advisers - how can I routinely record this advice given over the phone?

chrismac1

Whenever you speak to any HMRC person who gives any sort of information you are going to make use of, note down:

phone number, name of person (insist on this), tax office they are sitting in, date and time of call and nature of discussion - especially any information or advice given.

I had a client who called up to register for VAT. He followed this advice. HMRC totally screwed up, I then registered him online 3 months later, 2 months late as he'd gone over the thresshold by then. They rang him up to fine him and call round to assess his penalty for late registration, as a second hand car dealer the VAT involved was easily 4 figures.

He trotted off the details of the original phone call - this was in January 2011 - and that's the last we've heard of fines, penalties and visits.

So that advice saved my client all sorts of trouble taking HMRC through his records on the visit, plus £1k plus in VAT he had no way of getting back from his customers, plus unspecified fines. Name, rank and number every time!

no_choice_now

Bandraggle wrote: »

In life, a statement and invoice are usually very different things. A supplier will invoice sales and send a seperate statement of account.

The legal obligation to make a payment on accounts stands under S59A Taxes Management Act 1970. No 'invoice' is required.

Common law supercedes statute law. An invoice can be disguised as many things, including a statement, a fine, or a letter. Commercial law 101.

cottager

Sadly we can't take advantage of the extra time as they must have still had paper when it came to sending OH's statement! -- payment went off yesterday
And they STILL can't accept Faster Payments! :mad: