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Where Taxpayers and Advisers Meet

HMRC Late Assessment Appeal Denied

kj02007
Posts: 2
Joined: Mon May 29, 2017 12:30 pm

HMRC Late Assessment Appeal Denied

Postby kj02007 » Mon May 29, 2017 1:13 pm

Late last year, I received contact by a debt collection agency informing that I had over £7K owning to HMRC.

I contacted HMRC and found that because I had changed address in 2010 and not updated NI details, HMRC had accrued penalties and assessments for the years since. During this period I was a PAYE employee and never expected to complete tax assessments and because of change of address, I had not received notification to complete a self assessment from HRMC.

Following contact with HMRC, I sent in all the tax assessments required for the years 2010 -16. I managed to have all penalties removed and the assessments were recalculated for all years except 2010-11, 2012-12 and 2013-14. This has resulted in a total amount of £4160 outstanding for these years only. I have appealed the assessments for these years, but this has been denied based on S115 TMA 1970 as 'notices legally served', even though I provided proof I had moved address.

I am wondering if I can apply now under the 'special relief'? The amounts outstanding are much more than I would have owed if I had received and completed tax assessments for each of these years, in the time required.

I am also baffled how HMRC can deny me any right to appeal for these years to be reassessed given that:

1. I never received the request to complete the assessments;
2. Having never had a response from me at my old address, never tried to obtained details from PAYE documents;
3. Can state that a document is legally served 'regardless of whether they were received or not';

Does anyone have any other advice for me? This is more money than I can pay. I am deeply disturbed that HRMC can treat me in this regard and the error of not updating address details on my NI can result in such an expensive mistake.

Many thanks

SteLacca
Posts: 443
Joined: Fri Aug 07, 2015 2:17 pm

Re: HMRC Late Assessment Appeal Denied

Postby SteLacca » Wed Jun 14, 2017 9:11 am

There have been tribunal cases where this was a part of what was addressed. The tribunals have determined that the notices are legally served if HMRC can reasonably believe that they have been sent, and received (irrespective of the reality).

Moving home carries little weight against this view. The generally accepted principal is that it is your responsibility to notify them of a change of address, and that HMRC can't be expected to divine this otherwise.

Whilst you could try a claim for special relief, you are going to need more than "moved house" to support the claim.

I hate to be the bearer of bad news, but my gut tells me you would have little chance of success.

kj02007
Posts: 2
Joined: Mon May 29, 2017 12:30 pm

Re: HMRC Late Assessment Appeal Denied

Postby kj02007 » Wed Jun 14, 2017 3:59 pm

Thanks SteLacca for your response.

wamstax
Posts: 1868
Joined: Wed Aug 06, 2008 3:39 pm
Location: Operate Nationally but based in Aberdeen
Contact:

Re: HMRC Late Assessment Appeal Denied

Postby wamstax » Sun Jan 21, 2018 11:28 am

What happened to the alleged notices that they say were issued? Presumably if the notices were issued to an address that you were no longer at why wouldn’t they be returned to HMRC vía the DLO(dead letter office).

How could they reasonably believe that the letters were delivered ( or did they just throw the returned notices in the bucket?
regards and hope this helps
http://www.wamstaxltd.com
Operates Nationally with competitive costs
and email and phone contact can be obtained from website

bd6759
Posts: 3090
Joined: Sat Feb 01, 2014 3:26 pm

Re: HMRC Late Assessment Appeal Denied

Postby bd6759 » Sun Jan 21, 2018 1:42 pm

A 7 month old thread!

A notice is served if it is sent to the last known address. It doesn't matter what happens to it after it leaves HMRC. (s115 TMA)

wamstax
Posts: 1868
Joined: Wed Aug 06, 2008 3:39 pm
Location: Operate Nationally but based in Aberdeen
Contact:

Re: HMRC Late Assessment Appeal Denied

Postby wamstax » Sun Jan 21, 2018 1:46 pm

But if they’re returned DLO how can HMRC reasonably believe?
regards and hope this helps
http://www.wamstaxltd.com
Operates Nationally with competitive costs
and email and phone contact can be obtained from website

bd6759
Posts: 3090
Joined: Sat Feb 01, 2014 3:26 pm

Re: HMRC Late Assessment Appeal Denied

Postby bd6759 » Sun Jan 21, 2018 2:14 pm

A reasonable belief that they sent the document to the last known address. If it was returned DLO, that would confirm the belief.

robbob
Posts: 2800
Joined: Wed Aug 06, 2008 4:01 pm

Re: HMRC Late Assessment Appeal Denied

Postby robbob » Sun Jan 21, 2018 2:45 pm

did you meet the requirements that a return needed to be filed? - if not - i think appealing on the basis no return was actually due (as the reasonable excuse) has been a route that worked for some where a return was issued and completed but there was no reason for the return to have been issued in the first place.

wamstax
Posts: 1868
Joined: Wed Aug 06, 2008 3:39 pm
Location: Operate Nationally but based in Aberdeen
Contact:

Re: HMRC Late Assessment Appeal Denied

Postby wamstax » Sun Jan 21, 2018 3:06 pm

Service is not receipt and taxpayer must have received. S115 only good where the opposite isn’t proved. If you can prove letters returned RLS or DLO and you were not at the address then you have proved you did not receive (IMO)
regards and hope this helps
http://www.wamstaxltd.com
Operates Nationally with competitive costs
and email and phone contact can be obtained from website

bd6759
Posts: 3090
Joined: Sat Feb 01, 2014 3:26 pm

Re: HMRC Late Assessment Appeal Denied

Postby bd6759 » Sun Jan 21, 2018 5:00 pm

Service is not receipt and taxpayer must have received. S115 only good where the opposite isn’t proved. If you can prove letters returned RLS or DLO and you were not at the address then you have proved you did not receive (IMO)
Notice must be given. There is nothing in the requirements about it being received. s115 says that where a notice must be given, it can be served by post.

If a document is properly addressed, pre-paid and posted, it is DEEMED to be served in the ordinary course of post unless the contrary is proved. (s7 Interreatation Act). DLO doesn't mean it wasn't served. Quite the reverse; it means it was served and the current occupants returned it. That is service at the the last known address.


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