Should I expect another demand soon?

MimiJane

Hi all,

I receive an ill-health pension and collect incapacity benefit, which has been the case for the last 12 years. Just over a year ago, the HMRC sent me a demand for approx. £1500 for the last 2 tax years. I successfully applied the A19 rule and they wrote off the majority (apart from the then current tax year) after a succession of letters stating my case.

During one of my (many) 'phone calls to them, they mentioned that I owed tax going back years - I suspect since I first started to collection my pension/IB.

My question is - do you think I am likely to be chased for tax going back further as a matter of course, or are they likely to look at my file, note my successful appeal and leave me alone?

nikki1520

Did you sort it all out going forward last year? If you owed tax for previous years, but got an A19 concession, you should be ok going backward - however, going forward, you and they both know you owe tax and should be paying it

Mikeyorks

As ESC A19 specifically relates to HMRC not timeously using information available to them - it's unlikely you will get a further request for underpayments arising from the same source? I assume your Coding for the current year has been sorted to inhibit any recurrence?

MimiJane

I had the money I owed from the current tax year deducted from my pension for the year to this April and my tax code was amended accordingly.

However, I am aware they are going back further (2005/6?) to look at people's tax affairs and was informed when I rang at the time that I did owe money from previous tax years, but they were unlikely (at that time) to attempt to collect it. As I gather this has now changed, I am concerned they'll make attempts to collect any tax I "owe" prior to 2008/9.

I would of course try to apply A19 again if they contact me, but just wonder if they are likely to pursue any amounts prior to 2008/9, knowing I've successfully applied the concession rule for 2008/9.

Many thanks for the help so far.

Mikeyorks

MimiJane wrote: »

However, I am aware they are going back further (2005/6?) to look at people's tax affairs

Where would you be 'aware' of that from? My fairly clear understanding is that, give or take a few exceptions, they've drawn a line at 07/08 as regards underpayments. And the Treasury Sec had confirmed that to the Commons. But they are going further back with refunds.

It's a pointless and admin heavy exercise going back further than 07/08. They will be tied in knots with appeals and complaints.

This is their published state of play:

http://www.hmrc.gov.uk/p800/paye-tax-calcs.htm

MimiJane

If you're telling me that's the case, then great. I've read in the press that they have decided to go back years, but that may just relate to rebates then. My husband received a small rebate the other day relating to 2005/6.

Mikeyorks

MimiJane wrote: »

If you're telling me that's the case, then great. .

Extract from an MSE News item dated 11th Jan 2011 :

Exchequer Secretary to the Treasury David Gauke says HMRC had been working hard to clear the long-standing backlog of unreconciled cases, and since September it had made rapid progress.

He says by the end of last year people had received either a refund notice or a calculation of how much tax they owed in 90% of cases where HMRC had received all the information it needs.

Gauke adds that HMRC is also working to clear the backlog of unreconciled tax cases from earlier years, but would not be chasing people for unpaid tax for periods before the 2007-08 tax year, although it would offer refunds to people who overpaid.

MimiJane

Fantastic! Many thanks Mike - you've put my mind at rest.