No To Retro Tax – Campaign Against Section 58 Finance Act 2008

[BrilloPad]

Hi All,

I currently have a credit balance on my SA account and have requested a repayment online; however this was not forthcoming.

Before I engage with HMRC directly on the phone, can someone advise if HMRC are legally entitled to withhold refunds on credit balances given our situation?

Thanks in advance
SL

Contact TQ or NW at montp. They have experience of this.

[GBHuhd]

Hi All,

I currently have a credit balance on my SA account and have requested a repayment online; however this was not forthcoming.

Before I engage with HMRC directly on the phone, can someone advise if HMRC are legally entitled to withhold refunds on credit balances given our situation?

Thanks in advance
SL

HMRC did the same with me as well, since its was a small amount i let it go...for the time being....

[TalkingCheese]

Hi All,

I currently have a credit balance on my SA account and have requested a repayment online; however this was not forthcoming.

Before I engage with HMRC directly on the phone, can someone advise if HMRC are legally entitled to withhold refunds on credit balances given our situation?

Thanks in advance
SL

I had a similar situation a year or so ago. There was a black mark against me because of our situation but after chasing they actually apologised and paid me the money because it was not to do with one of the years being questioned.

[BettySwollocks]

Hi All,

I currently have a credit balance on my SA account and have requested a repayment online; however this was not forthcoming.

Before I engage with HMRC directly on the phone, can someone advise if HMRC are legally entitled to withhold refunds on credit balances given our situation?

Thanks in advance
SL

I can back up what TC said: they witheld a fair sum of money from me (relating to non Mont P tax years) for almost 8 months before finally coughing it up earlier this year...

Just be persistent...

[travellingknob]

A couple of minor points.

The letters actually came from the team in Middlesborough dealing with the scheme, not Manchester.

There was nothing different about these clients' circumstances than anyone else who received discovery enquiries, reinforcing the precedent this sets.

can you give any more detail exactly what grounds these were closed on ? Was it out of time or something else ? Not exactly sure of the difference between discovery and any other form of enquiry but it seems best to strike while the iron is hot.

[DonkeyRhubarb]

Discovery

can you give any more detail exactly what grounds these were closed on ? Was it out of time or something else ? Not exactly sure of the difference between discovery and any other form of enquiry but it seems best to strike while the iron is hot.

HMRC have 12 months from when you submit your tax return to open an enquiry.

They can only open an enquiry after the 12 months by using discovery on the basis that there was insufficient information on the tax return.

Montpelier have always maintained that they had no right to use discovery because the claim to double tax relief was fully disclosed on the tax returns. HMRC have now conceded this in two cases, and ultimately they may concede the other three hundred or so.

I have suggested to a couple of people, who had enquiries opened discovery, that they write to HMRC and request that the closure notices be withdrawn. It will be interesting to see if HMRC agree to this.

[WhatEver]

So if a discovery year is no longer being disputed does that mean HMRC can’t go after this? So despite the retro S58 they can only go after disputed years?

[DonkeyRhubarb]

So if a discovery year is no longer being disputed does that mean HMRC can’t go after this? So despite the retro S58 they can only go after disputed years?

Correct.

[travellingknob]

HMRC have 12 months from when you submit your tax return to open an enquiry.

They can only open an enquiry after the 12 months by using discovery on the basis that there was insufficient information on the tax return.

Montpelier have always maintained that they had no right to use discovery because the claim to double tax relief was fully disclosed on the tax returns. HMRC have now conceded this in two cases, and ultimately they may concede the other three hundred or so.

I have suggested to a couple of people, who had enquiries opened discovery, that they write to HMRC and request that the closure notices be withdrawn. It will be interesting to see if HMRC agree to this.

Thanks DR, I will do the same and report in 2-3 months time when i get a response (yes i know they are supposed to reply in a month but they never have so far).
I have written to them on this before but got fobbed off. I also questioned their response further saying they knew all along as demonstrated by TE63 but that of course got superseeded by s58 - In HMRCs eyes anyway !

Still, I have long hoped tribunals will throw out the out of time discoveries given the evidence that HMRC were fully aware what to look for all along and this latest move seems to indicate realisation in HMRC that will indeed be the case. It could of course just be another inconsistancy to add to the list.

[DonkeyRhubarb]

I don't have precise figures but...

1) Over 300 enquiries were opened under discovery.

2) Several hundred users have never received any enquiries, in many cases involving multiple tax years.

It is likely that in the region of 1000+ tax returns will not be caught by S58.