Has HMRC got the right to behave as below?

zygurat789

agrinnall wrote: »

Well yes, in your ideal world it wouldn't have happened, but given that it has Pennywise's suggestion seems like a simple first step to get the issue resolved, which for sure won't happen if the OP does nothing.

And I'm not clear how HMRC will be impacted by storming "a major arts and cultural centre in the heart of London"?

http://www.somersethouse.org.uk/

I would quite happily resolve the issue by shoving it down their throat in court, if they dared take it that far but they don't have much common sense since their response to not catching 19 of their top 20 targets is to add another 10 to the list - I bet the new 10 feel afraid.


You may find this link more relevant.

http://www.hmrc.gov.uk/pdfs/cop_cons.htm
see annex 2

Guacamole321

Pennywise wrote: »

No need to escalate at this early stage. The interest is generated automatically by HMRC computer.

Just write to them, lay out the circumstances, and ask for the interest to be written off. Almost certainly, they will write it off.

It's if and when they write back refusing that you take things further.

I acted in my case (by getting an MP involved right away) on the advice of my cousin - who works for HMRC. I would probably have tried reasoning with them first as you suggest, but my cousin, knowing how their systems work, said just to get an MP to contact them.

Edited to add: OP has already spoken to HMRC, who have said the interest stands.

agrinnall

zygurat789 wrote: »

You may find this link more relevant.

http://www.hmrc.gov.uk/pdfs/cop_cons.htm
see annex 2

There's no date on that page, but I suspect it may be old.

http://en.wikipedia.org/wiki/Somerset_House#Government_use

"Various divisions and directorates of HMRC previously occupied the East, West and New Wings of Somerset House until early 2009 when almost all staff relocated with most moving across the street"

zygurat789

agrinnall wrote: »

There's no date on that page, but I suspect it may be old.

QUOTE]

Just another example of HMRC efficiency.
The question has to be asked, are they fit for purpose?

dori2o

zygurat789 wrote: »

As I undestand this the interest is on unpaid tax that was never due, was created by an HMRC error and has now been withdrawn.
In which case to leave rthe interest, however created, unwithdrawn is wrong. HMRC would issue a penalty and a fine for this if a taxpayer did this.
In these circumstances to expect the taxpayer to incur more expense and time pointing out HMRC's mistakes to them is patently wrong.
Is it any wonder that everyone, except employees, hate HMRC
Perhaps we should dump all the HMRC statements into our local harbour or storm Somerset House and see what comes of it.

It will not be the case that the change has reduced the tax liability. In that instance no interest charge would have been applied.

the only way the system can introduce an interest charge is if there is an outstanding balance on which to charge it.

It seems the amendment to the return resulted in an increased amount of tax being due, because a lower amount of benefit in kind was transposed from the return and into the calculation, therefore providing a calculation which was lower than it should have been.

Once the amendment took place and the correct benefit in kind figure input into the system, the tax calculation was adjusted, and as the payment deadline for 11/12 was 31/01/2013, interest was added to the account from 01/02/2013 onwards.

As I said in my earlier post, as the return was sent in before the 31/10/2012 paper filing deadline the OP will have received a copy of the tax calculation which tells them what they had to pay in January 2013. This was the OP's opportunity to realise the fiures in the calculation were incorrect.

It doesn't excuse the fact the figures have been transposed incorrectly, but that is simple human error, it happens in every company, in every industry, and everyone will be guilty of it at one time or another in their lives.

The way to resolve it is not to go bounding in all guns blazing.

It is not currently an issue that can be dealt with by phone. It has to be a formal objection to the interest charge, spelling out the reasons why it is unfair. This has to be done in writing, no matter who is at fault.

As Pennywise says. i'd be very suprised if the interest wasn't immediately cancelled when the letter is dealt with.

John_Pierpoint

Try having the same argument with your credit card company ?
[Actually back in the early days, Barclaycard let me off and Access stuck to their guns].

The only self evidently unfair bit in these circumstances is this:

http://www.hmrc.gov.uk/rates/interest-late-pay.htm

From................ Late payment % Repayment %
29 Sep 2009 ..... 3.00................... 0.50

and I notice that HMRC reserve the right to not pay interest during the debate with the tax payer, even if they turn out to have got it "wrong".

Also try having the same argument with the social security department (what ever that now calls itself).

My MP was fed lies and misinformation and I had to play hard ball [exercise my right of offset?] but the !!!!!!s still owe the estate £20 from 2004.

God, give me grace to accept with serenity
the things that cannot be changed,
Courage to change the things
which should be changed,
and the Wisdom to distinguish
the one from the other.

snowshine

agrinnall wrote: »

Clearly you can use a computer as you've posted here. So why can you not register for SA online and complete your return electronically, rather than on paper? That way there is no transcription of data and therefore no possibility of error other than by yourself. You can also see the amount that you owe/are owed and the calculation that has been done to arrive at that amount. It's a no-brainer really.

Hello there,
For the following reasons I could not/do not/have
1.No available broad band where I live
2.I contact here the forum form a public library computer;)
3.Not very computer knowledged
4.I hope people like me who could not go on computer make HMRC keep employees to do the entering the data from forms-that in turn keep the job and not made redundant, I guess

agrinnall

OK, well in that case you'll have to accept that mistakes that are out of your control may happen, and that Pennywise's suggestion in post #9 is probably your best option at this stage.

John_Pierpoint

Before I got broadband, I used to take my paperwork to the library and key it into the Self Assessment system there.

The secret to the self assessment system on-line is that you can keep on playing what if games with it, until you get it right and only then submit what you have built up in more than one session.