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Where Taxpayers and Advisers Meet

Pay first, or withhold till errors corrected

Oldtramp
Posts: 16
Joined: Sun Mar 26, 2017 7:20 pm

Pay first, or withhold till errors corrected

Postby Oldtramp » Wed Jan 16, 2019 7:21 pm

I filed the SA return on paper in August and heard nothing till Nov, when I received a refund and an assessment with a couple of minor errors - about £1000 to my detriment in total.
I wrote challenging the errors and also to say that also that a small reduction in EIS relief was due, since the sponsor of one scheme had sold shares within the 3-year period. This should have reduced EIS relief from £8000, previously granted, to £7600, in round figures

In early Dec I received an apologetic note followed, a few days later by a revised assessment with a two new and larger errors. Most strikingly, the £7600 of EIS relief still due had been mis-typed as £760. This, along with the other (minor) error still outstanding led to the assessment about £7000 too high. I wrote, to complain on 29/12 and haven't heard back as yet; nor can I get them to pick up the phone.

But what I have received is a notice to pay £4300 by 31/1/19 with a line to say they'll claw the rest of the £7000 through adjusting my 19/20 tax code.

What's the general advice --- that I should pay the £4300 and keep arguing with them. Or that I should pay nothing till it's resolved?

Whilst I'm sure that their assessment is in error it remains quite possible that I do owe them some small sum - a couple of hundred, say - and I don't wish to be fined if that becomes overdue.

robbob
Posts: 2826
Joined: Wed Aug 06, 2008 4:01 pm

Re: Pay first, or withhold till errors corrected

Postby robbob » Wed Jan 16, 2019 9:16 pm

That sound pretty incompetent - ring them to complain and say you expect callback pronto so that you are not left hanging due to their incompetence.

That may not work mind in which case you should use your best judgment - all i would say is that there is a 5% late payment penalty levied if you haven't paid 17/18 tax by end of feb ish - so you may choose to pay to avoid further incompetence - although speaking fairly you shouldnt have to pay a penny if its stuff that can easily be pointed out to them

The nightmare is that the paper processing unit and probably related correspondence unit probably has the worst processing delays in the entire tax office - sometimes phone complaint can escalate to where you need to be - but not always.

Oldtramp
Posts: 16
Joined: Sun Mar 26, 2017 7:20 pm

Re: Pay first, or withhold till errors corrected

Postby Oldtramp » Thu Jan 17, 2019 12:28 am

Thanks, RobBob

To be clear --- I will not be fined if I delay paying anything until end Feb. Yes? If so, that gives 6 weeks to resolve matters rather than two till 31/1/19. Which is a damn sight better, especially as I'm abroad from 27/1 to 8/2.

I'll keep trying them on the phone but, thus far, haven't got beyond that system that records who I am, offers to register me for voice recognition, then terminates the call because 'We are very busy at present'. It's one of the reasons that I normally work by writing them letters, but that approach is less than adequate when, as here, a time deadline looms.

robbob
Posts: 2826
Joined: Wed Aug 06, 2008 4:01 pm

Re: Pay first, or withhold till errors corrected

Postby robbob » Thu Jan 17, 2019 9:27 am

Normally at first its just the interest charged at a very reasonable 3.5 % per year - calculated on a daily basis.

There is an exception to the rule if individuals inform hmrc late that they needed submit a tax return, however your submission in August pre dates the October deadline in that regard.

Ref calling them - i think they say first hour or last hour used to be quietest - but this will be their peak season with bods asking silly filing related deadline questions.

Perhaps you should ring the police to tell em hmrc are threatening / harassing you - like the dominoes pizza lady this week who spent £37 of her last £43 on dominoes pizzas to find out their oven was broke - she then rang the police to claim her kids couldnt now be fed - thats not even a fake story unfortunately to the best of my knowledge.

Oldtramp
Posts: 16
Joined: Sun Mar 26, 2017 7:20 pm

Re: Pay first, or withhold till errors corrected

Postby Oldtramp » Sat Jan 19, 2019 8:57 am

Thanks again. Now managed to get them on the the phone and been promised they'll review by 7/2. I think I'll hold off paying anything till then.

D&C
Posts: 61
Joined: Thu Dec 22, 2016 10:04 pm

Re: Pay first, or withhold till errors corrected

Postby D&C » Sat Jan 19, 2019 11:02 pm

Sounds like incredibly poor service however I'm not certain that paying nothing by 31 January is a good idea.

Unless you are happy to be paying interest in the full amount ultimately due

If you expect the Self Assessment calculation to show an overpayment then fair enough.

Oldtramp
Posts: 16
Joined: Sun Mar 26, 2017 7:20 pm

Re: Pay first, or withhold till errors corrected

Postby Oldtramp » Sun Feb 24, 2019 12:31 am

With nothing heard by the promised date of 7/2, and the penalty date of end-Feb pending I decided to pay the £4300 rather than to provoke HMRC by withholding.

Today, however, I've received an apologetic note confirming that they'd blundered on the EIS relief and had double counted some other income.

A revised assessment and refund is promised.... One can but hope that this one will be right.

Oldtramp
Posts: 16
Joined: Sun Mar 26, 2017 7:20 pm

Re: Pay first, or withhold till errors corrected

Postby Oldtramp » Mon Feb 25, 2019 6:23 pm

Well, well, HMRC had made a repayment which looks to be about correct by my sums.


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