How to fight your case ……..

elaine@cheapaccounting

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    Nov 4, 2005
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    Here is my advice on how to deal with your letter from HMRC …..

    I am not going to re-invent the wheel on letters to send to HMRC regarding the underpayments of tax.

    The Low Incomes Tax Reform Group has prepared sample letters and these can be found on the Guardian Web Site here:

    http://www.guardian.co.uk/money/2010/sep/07/tax-error-letter-templates

    (I shan’t copy them in case of copy right).

    The first thing is to work out which category you circumstances fall into and use the relevant letter form the site to match your circumstances:

    1.Did HMRC know about your additional income because they had been told by you or by the payer of the income e.g. DWP for Incapacity benefit, NHS for pensions etc

    (but see my note below)

    2.Did you provide the correct information to your employer and they have made an error


    3.Do you need the underpayment adjusted because it is incorrect


    4.Do you need your underpayment explained


    5.Do you need to complain because HMRC have not handled your case at all well
    From what we are seeing so far a lot of cases fall into the first category.

    Now I would use the sample letter provided but add something to it. Just before the final line of “I look forward to hearing from you.”

    Add this paragraph in bold, red letters:
    I refer to the attached letter demonstrating that you have applied the ESC A19 to a case of very similar circumstances to mine. In this letter you state that:
    “.. we should not ask you to pay the tax underpaid …”
    I believe that the same should be applied to my case.
    Then download and attach this to the letter to HMRC:

    Download letter from here.

    http://www.cheapaccounting.co.uk/blog/hmrcletter.pdf


    One of the members of our volunteer group can check your tax calculation for you.

    So pleas email us at:

    [email protected]

    Good luck with it and let us know how you get on by posting your case here:

    http://www.ukbusinessforums.co.uk/forums/showthread.php?t=179615
     
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    elaine@cheapaccounting

    Business Member
  • Business Listing
    Nov 4, 2005
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    By the way forgot to add.....

    If you owe tax:

    If the payment due is £2,000 or more HMRC will not expect you to pay until after the 31 December 2010 and will contact you after this date about how to pay.


    Read more here:


    http://www.hmrc.gov.uk/p800/paye-tax-calcs.htm


    And quote this to HMRC ....


    If collecting your underpayment through your code would cause you financial difficulty

    It is important that you contact us as soon as possible using the address or phone number on your P800 Tax Calculation. If we agree that collecting the underpayment over one year would cause you financial difficulty we may be able to spread the underpayment over two or three years.







    Again from information received HMRC ARE NOT APPLYING THESE RULES


    Do not let me bully you!
     
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    elaine@cheapaccounting

    Business Member
  • Business Listing
    Nov 4, 2005
    13,090
    2,896
    Also ...

    Do not despair if your first letter is rejected.

    We will continue to fight this - so get back in touch if this happens.

    HMRC are on very thin ice here. We can take this to complaint and upwards from there.
     
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