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Has HMRC got the right to behave as below?

snowshine
snowshine Posts: 148 Forumite
Part of the Furniture 100 Posts
edited 8 August 2013 at 9:37AM in Boost your income
I routinely send my tax return in paper format within the HMRC deadline. ie: By August of each year my paper format is sent to HMRC.:j

In the Tax year 2011/12 [last year] Tax calculation, HMRC made an error in calculating my tax. This transpired to be a fault on the part of an employee from HMRC when entering my information from my paper document into their computer system. This came to light when HMRC compliance division contacted me to inform that they have commenced an investigation to identify if:o

1.Have I omitted an entry about my company car -tax in benefit amount. [I could identify from my P11D form provided by the organisation I am working for]
2. If it was an omission on my part HMRC wanted to know the reason for the omission.

The letter goes on to inform me of my rights and I will have to pay the outstanding tax with interest and a penalty for the error. They expected a reply within 30 days of the date of their letter.

It was rather threatening in tone to say the way I felt.

I replied on the same day as I received the HMRC letter. In that I brought to their attention
1.My tax returns are always sent in the paper format

2.I did not make an error on entering -I have a copy of the tax return in it clearly I have entered the company car benefit as was typed in my P11D form.

3.I contacted the HMRC on the phone number as stated on their inquiry letter and was told by the HMRC spokesperson that the error is appear to originated from an HMRC employee on entering my details on the Inland Revenue's computer system.

4.Spokesperson suggested me to put the facts in writing with a copy of my returned "Tax return", which I've done.

I had a call yesterday from Tax office [Compliance division Tel; 03000 555 xxx -a person by the name......]. She acknowledges after she'd verified my information the fault is not mine but the HMRC's. She said that I would not be charged a penalty for the said error in underpayment of my tax but I will still have to pay interest on my unpaid [underpaid] tax.
I am only too happy to comply with their demand for the payment arising from underpayment but very mystified and not happy to have to pay interest? The interest is about £22.00 she said on the phone.:(
Can HMRC behave in such highhanded manner? What do you think?

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