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Honesty has led to my pensioner father receiving a tax bill for many thousands

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My dad is painfully honest. This year, he realised he'd been making a very easy to make mistake on a form to do with tax(please don't ask for further details, I don't have them).


So, because he is so honest, he wrote to HMRC and told them he'd been making the mistake. They simply sent back a huge bill.


My parents are pensioners with no money and I'm gutted for them. Do HMRC really hold no responsibility for checking forms? Is there anything they could do?
The people in my life: Betty Crocker, Mr. T and Gordon (of Gordon's gin) :T

Comments

  • xylophone
    xylophone Posts: 45,609 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    (please don't ask for further details, I don't have them).

    It is very difficult to make constructive suggestions without these details?
  • chrismac1
    chrismac1 Posts: 2,585 Forumite
    It's all about the details - what the mistake was, what tax years they were for, and the date of HMRC's assessments for them.
    Hideous Muddles from Right Charlies
  • Voyager2002
    Voyager2002 Posts: 16,275 Forumite
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    CazGreg wrote: »
    Do HMRC really hold no responsibility for checking forms? Is there anything they could do?

    No: tax-payers are responsible for providing information and under self-assessment calculating how much tax to pay. Those who provide false information face fines: since they know that your father made an honest mistake they are not applying any penalties.

    All that your father can do now is check whether the bill is correct, by calculating how much tax should have been paid over the last few years if his error had not been made. He might seek professional advice for this...
  • Darksparkle
    Darksparkle Posts: 5,465 Forumite
    Assuming you mean a self assessment, HMRC do check these regularly.

    However the outcome would be the same, if there was tax due a bill would be sent.
  • Pennywise
    Pennywise Posts: 13,468 Forumite
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    It's the nature of "self" assessment - there's a clue in the name. HMRC don't check all returns made (in fact they only check a small proportion) - that's well known and documented. Even the ones they do check, they can only work with the information they're given on the form. It's only when they open an enquiry or investigation that they'll ask for supporting documentation and information.

    Your parents are lucky that they've realised themselves and put it right, hence the comment above about no penalties etc. If it had been HMRC that discovered the error during a routine check, there would have been penalties to add on top of the tax due. If the misdeclaration was large enough, covered many years, and HMRC thought your father had been dishonest rather than neglectful, then there could have been a criminal prosecution.

    As said above, in this case, they're put back into the position they'd have been in had they declared and paid the right amount of tax at the time.

    It's exactly this kind of thing that's why a very large proportion of those under self assessment engage an accountant to prepare and submit their tax returns. It's all about getting it right and having peace of mind that a person's tax affairs are correct.
  • I really don't see how pensioners with no money could actually build up a large tax bill. You need to stop being so vague and get the full details from your father.
  • There is probably not a lot that can be done regarding the tax bill. Your parents or representative need to contact HMRC and detail the problems with payment. If there really is no money or realisable assets they could write it off (a rare occurrence) but they will at least negotiate a repayment plan. It will involve some detailed questions regarding their finances or ability to borrow from banks, credit cards, family etc but it has got to be worth a try before late payment surcharges and interest arise!
  • polymaff
    polymaff Posts: 3,950 Forumite
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    CazGreg wrote: »
    ... My parents are pensioners with no money and I'm gutted for them. Do HMRC really hold no responsibility for checking forms? Is there anything they could do?

    Couldn't you help out?
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