- About HMRC Is Shite
- RTI Resources
- Tax Insurance
- About KenFrost.com
- Contact Me
Dedicated to the taxpayers of Britain, and the employees of Her Majesty's Revenue and Customs (HMRC), who have to endure the monumental shambles that is HMRC.
Friday, 23 December 2011
My thanks to a loyal reader, who dropped me a note about a penalty notice that he had received from HMRC. The penalty notice prompted him to search through some case history, with some interesting results.
"In September this year I was issued with a penalty notice for failure to file my employers end-of-year return on time.
In my appeal I queried why I had not been informed earlier, when the amount of the penalty would have been less.
Enough about my own troubles - except that this matter prompted me to do a little research.
I found that in recent tax tribunal findings, scurrilous behaviour on the part of HMRC has been revealed.
In HOK Ltd and Commissioners HMRC, 22nd June 2011 it was stated in the findings:
'...Thus, HMRC deliberately waits until four months have gone by and does not issue the first interim penalty notice until, as in this case, September of the year of default.
By that time a penalty of £400, being four times £100 per month is said to be due.....
..In our judgement there is nothing fair or reasonable about in setting a computer system so that it does not generate a penalty notice until four months have gone by..
...It is no function of the State to use the penalty system as a cash generating scheme’.
In this case the tribunal reduced the penalty from £500 to £100.
In HMD Response International and Commissioners HMRC, 7th July 2011 the tribunal found that:
‘Even if there had been no reasonable excuse [for late filing] the penalty would have been reduced from £500 to £100 given that HMRC deliberately desisted from sending out a penalty notice until September 2010, by which time it could demand a penalty of £500....'
This appeal was allowed in full and the penalty dismissed.
Clearly somebody within HMRC is culpable and one wonders at what level the order to ‘set the computer system...’ was given. "
All seems a bit shabby really, doesn't it?
Tax does have to be taxing.
UK EXPATS: Reduce tax on UK Pensions
HMRC QROPS provider. Unlock your UK pension and access a 25% lump sum today.
Quote ID code "ABC" when contacting a QROPS specialist.
Professional Cover Against the Threat of Costly TAX and VAT Investigations
What is TAXWISE?
TAXWISE is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.
To find out more, please use this link Taxwise
Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.
Click the link to read about: Tax Investigation for Dummies
HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"