- Original Poster
- #1
Its about time someone raised this in parliament.
So lets get emails off to our local MPs.
Please spare 2 minutes of your time to do this and heres how. Thank you!
Find your local MP from the list here:
http://www.parliament.uk/mps-lords-and-offices/mps/
Then send them this email text: (cut and paste text)
As my local MP, I would like you to raise this matter in parliament.
This relates to the HMRC Tax blunder and the 1.4 million demands for tax payments.
The easiest way to explain this is for you to read a press release on this, see below.
Further information can be obtained from:
Elaine Clark, Chartered Accountant
Web: www.CheapAccounting.co.uk/blog
Tel: 0844 884 2399
Thank you for your help.
For immediate release
HMRC Tax Blunder HMRC not following their own rules!
The 1.4 million letters demanding underpaid tax are beginning to land on the door steps of the unsuspecting tax payer.
However it seems that HMRC may be ignoring their own rules that allow for the complete write off of the tax due.
Chartered Accountant and Managing Director of CheapAccounting.co.uk, Elaine Clark, who heads up a volunteer group of accountants to help those affected by these tax demands, has uncovered the ignored HMRC loop hole. She explains:
Tax is complicated and most people in receipt of these demands will not be aware of what they can do and why HMRC have not followed their own rules.
There is an appeal that can be brought by the tax payer called an Extra Statutory Concession (ESC). An ESC allows HMRC to use their powers to write off the tax due.
As part of an ESC there is what is called exceptional circumstances which, if they exist, mean that HMRC can write off all of the tax that they are demanding. What needs to be shown for this to apply is that HMRC failed more than once to make proper use of information received about a source of income and they have allowed tax arrears to build up over two whole tax years in succession so at least two tax year underpayments are due.
Most importantly these exceptional circumstances do exist in the majority of the cases that we are seeing through our PAYE Volunteer help group.
One such case is that of Mrs Pearn who is under the care of a consultant at a Mental Health Unit after being retired some years ago on mental health grounds, due to severe depression along with a catalogue of other problems, including the death of a child which affected her badly and still does.
She is in no position to understand or deal with this because of her illness. Her husband Richard has been in touch with the PAYE Help Group.
Elaine says:
This is a terrible case. Mrs Pearn receives incapacity benefit as well as an NHS pension. HMRC were informed of the two sources of income by the Benefits Agency and the NHS but did not act on the information provided. So the problem has gone on for a number of years and over £2,000 of underpaid tax has built up.
The exceptional circumstances do apply in this situation and we raise an Extra Statutory Concession appeal (ESC) A19.
The problem is that there are over 1.4 million of such cases and whilst this Extra Statutory Concession can be applied by HMRC, they seem to be rejecting all such claims by issuing a computer generated letter in less than a week of the claim being made. Surely it would take HMRC more than a week to review the individual circumstances of anyone? They are clearly not even reading the details.
Mr Pearn says that:
I just dont understand why this is our fault. Surely the various Government computer systems should have talked to each other. This will cause us severe hardship as we are both disabled, especially in the run up to Christmas.
The tax office in Cardiff said we would have to pay it back regardless of any hardship we will face which I thought was a bit unsympathetic of them. They have said to me that they will be adding daily interest because I have caused a dispute and will now not give me extra time to pay it back .
Elaine concludes:
We will continue to appeal against each case where these exceptional circumstances exist. How long will it take for HMRC to listen, I just do not know. In the mean time a lot of stress and anxiety is being experienced by the tax payer. I just hope that common sense is applied at some point and such cases are not pursued!
Notes to the Editor
To find out more, call Elaine Clark on 0844 884 2399 or mail on [email protected]
The PAYE Group is a group of volunteer qualified accountants established to help those on low incomes affected by the 2010 PAYE underpayments fiasco.
The group aims to provide a tax calculation check as well as general advice and guidance regarding how to handle the HMRC demand for the underpaid tax.
The group, set up by Elaine Clark, Managing Director of CheapAccounting.co.uk, is made up of accountants who are regular contributors to UK Business Forums where they provide free accounts and tax advice.
UK Business Forums have lent their support to this initiative by providing a dedicated forum for those affected by this issue.
Elaine says:
My view is that the people hit hardest by these demands for underpaid tax will be those who think they have done nothing wrong as their tax is collected via the pay as you earn (PAYE) system.
In all likelihood these people will never have received a letter from HMRC and the demand will be a great worry.
I want to offer them a place to get advice and help on this matter and through the UK Business Forums we are able to do just that.
More information can be found at:
http://www.ukbusinessforums.co.uk/forums/forumdisplay.php?f=122
Full stories can be read at Elaine Clarks blog:
http://www.cheapaccounting.co.uk/blog/
For technical information on the Extra Statutory Concession please see:
http://www.hmrc.gov.uk/esc/esc.htm
end
Thank you for your help!
So lets get emails off to our local MPs.
Please spare 2 minutes of your time to do this and heres how. Thank you!
Find your local MP from the list here:
http://www.parliament.uk/mps-lords-and-offices/mps/
Then send them this email text: (cut and paste text)
As my local MP, I would like you to raise this matter in parliament.
This relates to the HMRC Tax blunder and the 1.4 million demands for tax payments.
The easiest way to explain this is for you to read a press release on this, see below.
Further information can be obtained from:
Elaine Clark, Chartered Accountant
Web: www.CheapAccounting.co.uk/blog
Tel: 0844 884 2399
Thank you for your help.
For immediate release
HMRC Tax Blunder HMRC not following their own rules!
The 1.4 million letters demanding underpaid tax are beginning to land on the door steps of the unsuspecting tax payer.
However it seems that HMRC may be ignoring their own rules that allow for the complete write off of the tax due.
Chartered Accountant and Managing Director of CheapAccounting.co.uk, Elaine Clark, who heads up a volunteer group of accountants to help those affected by these tax demands, has uncovered the ignored HMRC loop hole. She explains:
Tax is complicated and most people in receipt of these demands will not be aware of what they can do and why HMRC have not followed their own rules.
There is an appeal that can be brought by the tax payer called an Extra Statutory Concession (ESC). An ESC allows HMRC to use their powers to write off the tax due.
As part of an ESC there is what is called exceptional circumstances which, if they exist, mean that HMRC can write off all of the tax that they are demanding. What needs to be shown for this to apply is that HMRC failed more than once to make proper use of information received about a source of income and they have allowed tax arrears to build up over two whole tax years in succession so at least two tax year underpayments are due.
Most importantly these exceptional circumstances do exist in the majority of the cases that we are seeing through our PAYE Volunteer help group.
One such case is that of Mrs Pearn who is under the care of a consultant at a Mental Health Unit after being retired some years ago on mental health grounds, due to severe depression along with a catalogue of other problems, including the death of a child which affected her badly and still does.
She is in no position to understand or deal with this because of her illness. Her husband Richard has been in touch with the PAYE Help Group.
Elaine says:
This is a terrible case. Mrs Pearn receives incapacity benefit as well as an NHS pension. HMRC were informed of the two sources of income by the Benefits Agency and the NHS but did not act on the information provided. So the problem has gone on for a number of years and over £2,000 of underpaid tax has built up.
The exceptional circumstances do apply in this situation and we raise an Extra Statutory Concession appeal (ESC) A19.
The problem is that there are over 1.4 million of such cases and whilst this Extra Statutory Concession can be applied by HMRC, they seem to be rejecting all such claims by issuing a computer generated letter in less than a week of the claim being made. Surely it would take HMRC more than a week to review the individual circumstances of anyone? They are clearly not even reading the details.
Mr Pearn says that:
I just dont understand why this is our fault. Surely the various Government computer systems should have talked to each other. This will cause us severe hardship as we are both disabled, especially in the run up to Christmas.
The tax office in Cardiff said we would have to pay it back regardless of any hardship we will face which I thought was a bit unsympathetic of them. They have said to me that they will be adding daily interest because I have caused a dispute and will now not give me extra time to pay it back .
Elaine concludes:
We will continue to appeal against each case where these exceptional circumstances exist. How long will it take for HMRC to listen, I just do not know. In the mean time a lot of stress and anxiety is being experienced by the tax payer. I just hope that common sense is applied at some point and such cases are not pursued!
Notes to the Editor
To find out more, call Elaine Clark on 0844 884 2399 or mail on [email protected]
The PAYE Group is a group of volunteer qualified accountants established to help those on low incomes affected by the 2010 PAYE underpayments fiasco.
The group aims to provide a tax calculation check as well as general advice and guidance regarding how to handle the HMRC demand for the underpaid tax.
The group, set up by Elaine Clark, Managing Director of CheapAccounting.co.uk, is made up of accountants who are regular contributors to UK Business Forums where they provide free accounts and tax advice.
UK Business Forums have lent their support to this initiative by providing a dedicated forum for those affected by this issue.
Elaine says:
My view is that the people hit hardest by these demands for underpaid tax will be those who think they have done nothing wrong as their tax is collected via the pay as you earn (PAYE) system.
In all likelihood these people will never have received a letter from HMRC and the demand will be a great worry.
I want to offer them a place to get advice and help on this matter and through the UK Business Forums we are able to do just that.
More information can be found at:
http://www.ukbusinessforums.co.uk/forums/forumdisplay.php?f=122
Full stories can be read at Elaine Clarks blog:
http://www.cheapaccounting.co.uk/blog/
For technical information on the Extra Statutory Concession please see:
http://www.hmrc.gov.uk/esc/esc.htm
end
Thank you for your help!
