Incorrect advice from IR helpline - my fault?

For the first time I had an unusual payment to make on my tax return , rather than just the normal PAYE adjustment by a few pounds.

I exercised some share options that meant I owed 5,000 tax. I filled in the return (showing 5,000 owed) and in January the taxman sent me a bill for

10,000 and the appropriate payment slip. I phoned them up to query and was told that it was "on account" - they presume I will make this again next year which is not the case. The chap I spoke advised that I should reply back, have the bill adjusted, which I did. The new demand arrived in March, and I paid the next day. Then a week later I got a surcharge for not paying the first amount. I appealled by sending in an enclosed form, lost (because I should have "just sent a cheque for 5,000").

I have the right of further appeal, but do I have any chance of winning? Are they at all liable for the advice they gave me on their helpline when they told me to just send back the demand with a reason and I'll get a new bill - no mention of a 300 surcharge on top. Is there any particular tack or emphasis I should take in the appeal letter or just send in the dates and facts? Are the helpline recordings kept and can they refer to them to back up my story?

Cheers!

Reply to
Simon
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I think you have to state more details. However if your Tax Return is a self-calculation any balancing payment is due on or before the 31 January 2005 - and it is your responsibility. I think legally there is no right of appeal against an interest charge but this does not mean to say it will not be waived. These are dealt with under interest objections. If you want to pursue it you could object in writing to your office but depending on the circumstances this may or may not be accepted. If you sent your Tax Return for a Revenue calculation and it was processed late i.e. after the 31 January 2005 you may have grounds. It is difficult to see the Helpline is at fault - were you ever advised not to pay it ? What was issued i.e. was it a statement or the calculation - either way I would say you were made aware of any amounts due if the self-calculation is not applicable. If the above does not apply can you give a chronological order of events starting from the day the Tax Return was sent in and what was issued since ? Calls to Tax Credit Helpline are recorded but unsure about others.

Reply to
x.x

The revenue are quite reasonable about the calculation of the advanced payments. The reason is that if you appeal against one and you are wrong the interest is backdated back to the original date so they don't lose out.

tim

Reply to
tim (moved to sweden)

he is complaining about an advanced payment for 2006.

of course there is. This isn't interest on tax from last year but for next. If you don't owe the money in the first place there can't be any interest due.

I don't think you read the question carefully enough.

tim

Reply to
tim (moved to sweden)

Then why has the interest charge arisen ? I am assuming the £5000.00 is the 2004/05 balancing payment due on 31 January 2005 which if obviously paid on time would not give rise to an interest charge. If the advance payment on account was reduced to nil it would cancel the interest charge for that charge. That`s why I said more details may be required. The poster said the request to waive it was turned down. I believe I am correct in saying there is no statutory right of an appeal against an interest charge - these disputes don`t go to the Commissioners or Special Commissioners because you cannot appeal against these charges. The H M Revenue and Customs have an Interest Review Unit ( unless circumstances have changed ).

Reply to
x.x

Then why has the interest charge arisen ? I am assuming the 5000.00 is the 2004/05 balancing payment due on 31 January 2005

which if obviously paid on time would not give rise to an interest charge. If the advance payment on account was reduced to nil it would cancel the interest charge for that charge. That`s why I said more details may be required. The poster said the request to waive it was turned down.

I believe I am correct in saying there is no statutory right of an appeal against an interest charge

tim

Reply to
tim (moved to sweden)

I know about the interest on late payments etc - where I am lost on this is why there is the interest charge in the first place. Have I overlooked something ?

Reply to
x.x

"tim (moved to sweden)" wrote

Do you mean 'balancing payment 31 January 2005 for tax year

2003/04*', -or- 'balancing payment **31 January 2006** for tax year 2004/05'? 2003-04 tax is paid as: Payment on account 31 January 2004 Payment on account 31 July 2004 Balancing payment 31 January 2005 2004-05 tax is paid as: Payment on account 31 January 2005 Payment on account 31 July 2005 Balancing payment 31 January 2006
Reply to
Tim

I had a demand of 10,000 of which I actually owed 5,000. I paid 5,000 but late (because I didn't have correct bill/payment slip and was advised by the helpline to wait for this). The interest I can accept, however I had a several hundred pound surcharge, thatis the part I thought I would appeal.

Cheers!

Reply to
Simon

I meant the balancing payment for 2003/04 due 31-01-2005. Actually I was thinking of interest charges and not surcharges -can you appeal against a surcharge ? Also is a surcharge only due on a balancing payment as opposed to a payment on account or penalty for late filing ? Not enough time yet to find out. I think in these cases you have to know if this is a Revenue calculation or self-calculation but I would say if it is a self-calculation any interest / surcharge would be due if paid late.

Reply to
x.x

Why appeal? Apply for reduced payments instead.

Reply to
Peter Saxton

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