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Alan the Geordie

3032 Posts

Posted - 07/09/2010 :  00:53:54  Show Profile Send Alan the Geordie a Private Message
Tax blunder revolt: Experts urge 1.4m Brits NOT to pay up for mistake made by the taxman.

The first batch of 45,000 letters demanding cash to be repaid will start to arrive on Tuesday - with the rest sent out over the next four months. Accountants, however, said recipients should act swiftly to use a little-known loophole which forces HM Revenue and Customs to abandon 'out of the blue' demands and effectively write off the money. .

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I'm thinking that this could equally apply to Tax Credit overpayments too, since these are covered by Tax Law - just the same as other tax issues.

"The best way to take control over a people and control them utterly is to take a little of their freedom at a time, to erode rights by a thousand tiny and almost imperceptible reductions.

In this way the people will not see those rights and freedoms being removed until past the point at which these changes cannot be reversed."

Adolf Hitler

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Mountain View


United Kingdom
829 Posts

Posted - 07/09/2010 :  19:18:21  Show Profile Send Robert a Private Message

I wonder how many will manage to get the ESC A19...if its anything like tax credits .. the answer will be no..

I wonder if we can all use this ..ESC A19

Up to 1.4million workers facing demands from HM Revenue and Customs to repay money after they under-paid tax could use a loophole to avoid doing so, accountants have advised.

HMRC has admitted that 5.7 million people have paid the wrong amount of tax due to errors in the tax code system.

The figure includes 1.4 million who have paid too little and will face demands for repayment as well as 4.3 million who paid too much and should receive rebates.

Taxpayers who will receive letters explaining that they under-paid face losing an an average of 1,428 each, starting from next April when National Insurance rises will come into force and VAT has increased to 20 per cent.

But people hit with the demands may be able to refuse to pay up as under tax rules HMRC must issue demands for underpaid tax within 12 months of the end of the tax year in which it became aware that people had underpaid.

If people provided HMRC with all the information they needed to get their tax code right and HMRC failed to do this, taxpayers can ask for an Extra Statutory Concession, also known as an ESC A19.

Mike Warburton, senior tax partner at Grant Thornton accountants, said: "Most reasonably intelligent people will assume that the taxman has got is calculations right."

Angela Beech, partner at chartered accountants Blick Rothenberg, said: "Those that receive these demands need to think before they automatically pay up.

"If you had given HMRC information that would have enabled them to adjust your tax code to make sure that you did pay the right amount of tax, then, if the time limit has passed for them to use that information, they cannot pursue you for the unpaid tax."

An HMRC spokesman said: "HMRC can consider writing off the underpayment in certain circumstances.

"Basically these are if HMRC had been provided with all the information necessary to get their tax right and the taxpayer could have reasonably expected their tax deductions to be right.

"In these circumstances they need to contact HMRC and ask for the underpayment to be reviewed on that

The truth is out there.. GO get it......Non Illigitamus Carborundum

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Ali M-W

3558 Posts

Posted - 08/09/2010 :  21:58:21  Show Profile Send Ali M-W a Private Message
Here's some guidance from LITRG if, along with your tax credit overpayment bill, you also get sent a demand for extra tax which HMRC feels it should have taken off you:

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Morpheus: I'm trying to free your mind, Neo. But I can only show you the door. You're the one that has to walk through it.
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