self assessment forms not received

[antxxxx]

Hi
I am hoping someone can give me some advice about what to do with my situation. I have never been self employed, or had any extra income outside of main employment. I have been employed by my current employer since summer 2001 and all my income has been taxed by PAYE. i have P60 for each year i have been employed.

In March 2009 i got a letter from HMRC saying i was late filling in a self assessment form. When i spoke to them i found out that i had been requested to fill in a SA form each year since 2002/2003. However, they had been sending the requests to an old address that i moved from December 2001. I had not told HMRC i had moved, but i had told my employer and assumed they had passed on the details to HMRC. Because they had been sending letters to an address i did not live at, i had not received them and so had not filled in any of the SA forms. They had estimated tax for each year i had not paid and fined me for late returns.

As soon as i found out i had been requested to fill in the SA forms, i filled them in for each year going back to 2002/2003 and sent them off. HMRC have adjusted for each year except 2002/2003 with the figures i have sent in, but they will not look at 2002/2003 as it is past the 6 year deadline for looking at tax returns. They are now requesting over £1400 for the estimated tax for 2002/2003 year, late payment penalties and interest since then.

I have written a letter asking for an appeal against this, but because it regarding a case from so long ago, they will not look into it.

The last letter rejecting my appeal suggested i could take it to tribunal if i disagreed with their decision. Should i try and do this, or is there some other approach i could take to try and sort this out.

Many thanks in advance for any advice anybody could give me regarding this.

Anthony

[mullet]

As soon as i found out i had been requested to fill in the SA forms, i filled them in for each year going back to 2002/2003 and sent them off.

You said that HMRC wrote to you in March 2009. When did you submit the completed returns?

There is no right of appeal against a determination, so I can't see how you could take this to the Tribunal. The only recourse I think would be for you to go to the Adjudicator or Parliamentary Ombudsman. I guess HMRC's case is that you should have told them. There is a little bit of legislation which states that a notice or return etc sent by post to the latest notified address is deemed to be served.

[pawncob]

The only way to appeal against a determination, is to submit a tax return, which you have done.If it was too late to submit the return, it was too late to make the determination.

[AvocadoK]

The time limit rules are as follows (quoting from HMRC's SA Legal Framework book)

No determination can be made after the period of five-years beginning with the filing date. The ‘filing date’ is the day mentioned in section 8(1A) so may vary if the notice requiring the return is issued later than usual.. The determination can only be replaced by an actual self assessment made within that time, or if later, within 12 months of the date of the determination.


So HMRC may well be correct in saying the time limit for displacing the determination has passed.

Nevertheless, I would certainly appeal to the Tribunal on the basis that you did not receive the notice to complete a return, as it was sent to the wrong address. I'd recommend getting some advice from an accountant who is experienced in investigation work and going to Tribunal. It sounds that HMRC have treated you appallingly badly, and the Tribunal may well have sympathy. You might also contact the Adjudicator.

Note that there are strict time limits for lodging appeals (these should be explained in the correspondence from HMRC).

AK

[mullet]

Nevertheless, I would certainly appeal

Against what? (Playing devil's advocate) A determination can only be displaced by the relevant return.

[wamstax]

Hi there I would refer HMRC to their own guidelines in relation to Equitable Liability. You can find a document to download at the following link

http://www.hmrc.gov.uk/pbr2009/pbrn34.htm

Please feel free to consult if you feel that you could take advantage of "loophole" that will in due course be written into legislation but at present is less know even by tax specialsists let alone by some lowly tax officials.

[wamstax]

Sorry that I didn't see your enquiry when it was posted on the site otherwise I would have pointed you there earlier.

Make sure that you can provide all the details required to enable you to engage with the concession as follows:-
Current law and proposed revisions
8. The current law does not allow HMRC to forgo tax that is legally due. By a concession published in Tax Bulletin 18 in August 1995, HMRC has not pursued amounts when a taxpayer can prove they would not have been due if he had filed a return on time. The concessionary treatment applies only where a taxpayer:
• shows that the figure of tax due is excessive;
• what the correct amount should have been; and
• brings his tax affairs up to date, including payment of tax, interest and penalties.
9. The concessionary treatment can usually only apply to any taxpayer on one occasion although it may cover a number of years.10. This measure will put the concession on a statutory basis.

So make sure that if you qualify to use the Concession that you make your application as comprehensive as possible

[wamstax]

Finally if they will not accept that your case falls within the Equitable Liability - "EL" - concession I would make a formal complaint - through HMRC formal complaints procedure - as appealing to a Tribunal will not allow matters to be revised as the application of the "EL" is at present by concession only and the tribunal could not intervene.

[antxxxx]

Many thanks for all your suggestions. I will write to them and ask them to consider my case under the EL guidelines

Anthony

[wamstax]

Remember and calculate the tax liability that should have existed during that year before writing to them as you will need to put that figure on the table as one of the conditions for being allowed the concession.

I would also be inclined to include the link and attach a copy of the paper on EL with your letter in case the offcier hasn't heard about it before..... It is mainly dealt with in relation to Debt Management staff and especially when legal proceedings have been instigated. However you should get it in up front as soon as possible and before they start things like distraint and debt collection.

Will keep the fingers crossed