Tuesday, 12 July 2011

Catch 22

Catch 22My commiserations to a loyal reader, who advised me about a communications issue he has had wrt HMRC and the R40 form "Claim for repayment of tax deducted from savings and investments".

Having completed the form, he sent it off to HMRC and in due course received this response:

"Thank you for your R40. I can confirm that the appropriate amount of tax has been deducted for 2010-11.

I do not propose to issue a tax calculation unless requested.

Signed by the Admin. Officer.
"

My loyal reader, not unreasonably (given that errors do occur), would very much like to request a calculation. However, he is concerned that if he writes to HMRC they will not answer letters (as specifically stated by his local tax office) and if he calls he will have to spend an eternity on the phone.

Catch 22!

Tax does have to be taxing.

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10 comments:

  1. Your loyal reader should bloody well make them send a computation. If the local office won't answer letters (Why? What are they paid to do?) then a request to La Grande Dame Strathie or her Little Helper Hartnett should do it. Failing that, an MP complaint always used to get them running around in ever-decreasing circles until they disappeared up their own behinds.

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  2. Public Service
    Civil Service
    No Fecking Service
    Google MALFEASANCE

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  3. @21.38

    It's a business, you muppet.

    ReplyDelete
  4. What planet you from dude?

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  5. It is not policy to issue computations where there is no refund of tax or where there is a small underpayment.
    if your loyal reader presses for a computation then he will have to pay any shortfall no matter how small if the computation is issued.
    so I was told by someone who works for HMRC

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  6. "if he writes to HMRC they will not answer letters (as specifically stated by his local tax office)"

    His local office won't deal with his letter. You don't have local offices any more due to the way they have organised the work.

    And 12 July 2011 22:51 is correct.

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  7. Failing that, an MP complaint always used to get them running around in ever-decreasing circles until they disappeared up their own behinds.

    @12 July 2011 20:47

    Agreed. Within a few days of my MP's letter thumping on La Strathie's pudenda...all was sorted,........
    Get writing.........

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  8. "Your loyal reader should bloody well make them send a computation."

    @12 July 2011 20:47 The words 'petard' and 'hoist' come to mind.

    Once HMRC 'bloody well' sends a computation - it has to request the 'small' underpayment that occurred as HMRC will have notified them of the underpayment that has occurred. This is why it doesn't generally send them in these cases.

    What the article doesn't state is at the bottom of this letter it also usually states there's a small underpayment and if the person requests the calculation the HMRC has to collect the underpayment.

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  9. @11:19 17 July 2011

    Im not sure HMRC's system is capable of collecting an underpayment less than £10

    As for Ken's loyal reader...

    If he/she is a basic rate taxpayer & tax has been deducted at source, then the letter is likely to be correct. If no tax has been deducted they are likey to be underpaid, unless there was a deduction for untaxed interest in their tax code for the relevant year

    If they are a non taxpayer & tax has been deducted at source it is likely to be incorrect. If no tax has been deducted at source, the letter will be correct.

    If they are a higher rate taxpayer it is likely to be incorrect, unless they had an adjustment to collect higher rate tax on investment income in their tax code for the year in question.

    HMRC's customer centric strategy would prefer Ken's loyal reader to do a little bit of maths for themself to determine whether a repayment of tax is due or not before contacting them.

    My advice to Ken's reader is that he should check all his documentation, in conjuction with the info available on the internet about how income tax works to decide if this letter is correct or not.

    If its wrong then should complain to their MP, if its right... 1 - 0 HMRC!!

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  10. @17 July 2011 20:57

    I can't help thinking that if the loyal reader discovers they are in fact underpaid by one, maybe even two or three digits, that they'll be getting in contact with their MP demanding that HMRC charge them the tax. It would be an 'own goal' wouldn't it?

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