Received letter from HMRC about the appeals against our decisions offer of a review

[WEBVAT]

Dear Friends,

I have received a letter from HMRC about the appeals against our decisions offer of a review for the years 2009, 2010 and 2011. I have paid APN's around those years.
HMRC mentioned an amount in loans and mentioned there is a tax due on that amount, also mentioned that i have paid APN's during that year and that amount will be taken into consideration once the appeal is settled.

What should I do. Also i have incurred expenses during that years, but don't have records about the same.

HMRC mentioned two options offer of review or i can appeal to the tribunal.

Please what should i do in this case or can I ignore the letter.

Regards

[woody1]

There is a 3rd option - settle. On top of what you've already paid in APNs, there would be late payment interest (and possibly NI). You could always ask for a payment plan if you haven't got any money set aside.

You could accept their offer of a review but from what I've heard they're just a rubber stamping exercise/formality before an appeal goes to tribunal.

You could appeal to the tribunal (FTTT) but hiring legal representation is very expensive, and besides what possible chance would you stand?

[cojak]

What does your tax specialist say - because you do have a tax specialist, don’t you?

if you don’t, try Markel Tax, Gilbert Tax or WTT, not some random poster off the internet who won’t give you good advice as they don’t have access to all the details of your case.


Other than that woody1 is reasonable. The only bit of advice I can give is don’t ignore the letter.

[woody1]

The only bit of advice I can give is don’t ignore the letter.

Usually these letters come with time limits eg. request a review or appeal to the FTTT within 30 days. Failure to do so will probably lead to penalties and enforcement action.

[WEBVAT]

There is a 3rd option - settle. On top of what you've already paid in APNs, there would be late payment interest (and possibly NI). You could always ask for a payment plan if you haven't got any money set aside.

You could accept their offer of a review but from what I've heard they're just a rubber stamping exercise/formality before an appeal goes to tribunal.

You could appeal to the tribunal (FTTT) but hiring legal representation is very expensive, and besides what possible chance would you stand?

Thanks for the reply. I can't afford a tribunal or legal services. Seems like i have to reply to HMRC for offer of review.( I am looking to reply by email as they have given email id)

[WEBVAT]

What does your tax specialist say - because you do have a tax specialist, don’t you?

if you don’t, try Markel Tax, Gilbert Tax or WTT, not some random poster off the internet who won’t give you good advice as they don’t have access to all the details of your case.


Other than that woody1 is reasonable. The only bit of advice I can give is don’t ignore the letter.

I used to be with WTT but it has being one yr they were asking huge fee of 3k Plus couldn't continue, i dont have any tax specialist, seems like i have to send a email HMRC for offer of review and also mention that i had expenses during that years.

[cojak]

I used to be with WTT but it has being one yr they were asking huge fee of 3k Plus couldn't continue, i dont have any tax specialist, seems like i have to send a email HMRC for offer of review and also mention that i had expenses during that years.

In that case I would go to Gilbert Tax or Markel Tax because the specialist will save you a LOT more negotiating with HMRC than you’ll pay them, no matter how expensive the specialist.

Other than that delay is your best friend, because you will have to pay HMRC in the end.

[bylren001]

The tax you be liable to pay would be based on some prescriptive calculation (2020 Settlement Terms) - so you would be liable to pay tax, NI, interest and penalties. Are you saying its possible this is negotiable or elements of this are negotiable (IE: Interest and penalties)? Just trying to figure out whether it's worth getting an advisor if I can validate the HMRC calculation myself.

[WTFH]

The tax you be liable to pay would be based on some prescriptive calculation (2020 Settlement Terms) - so you would be liable to pay tax, NI, interest and penalties. Are you saying it's t dependspossible this is negotiable or elements of this are negotiable (IE: Interest and penalties)? Just trying to figure out whether it's worth getting an advisor if I can validate the HMRC calculation myself.

It depends on how simple or complex your scenario is, and how well you understand how Hector works. If you owe money from 2 years ago, and it's just for one year, and the underpayment was because you forgot to declare some earnings that were paid directly, then you can probably do it yourself.

If it's multiple years, from some time ago, and you were paid through some kind of complex structure or scheme (e.g. loan, films, etc), then you're best to get a professional in. You might be able to do it yourself, but without knowing every single detail of your situation, no sensible person on here would suggest DIY.

A good tax adviser, such as the ones Cojak mentioned above, will not try to find ways to help you avoid paying the tax due, but will go through the calculations and make sure that you don't pay a penny more (or less) than you have to. They can also help towards getting payment terms agreed and take stress out of the situation.

[woody1]

...so you would be liable to pay tax, NI, interest and penalties.

Tax and interest definitely.

If you were an employee on PAYE (not self-employed) then I'm not sure there would be any NI. Equally, I'm not sure there would be any penalties.

As cojak and WTFH said, this is where an advisor could help.