W Maxwell (TC2849)
M Duffy (TC2795)
A new client was substantially in arrears with his accounts and tax returns. These have now been brought up to date and returns been prepared for 2007/08 onwards. There is a loss for 2007/08, but HMRC are refusing to repay the payments on account for that year. Can action be taken to recover the tax?
Higher incomes parent who have received child benefit this year and do not already complete tax returns must register for self assessment by 5 October to avoid penalties in relation to the high income child benefit charge (HICBC), HMRC have warned.
The department plans to write to 2m higher rate taxpayers, including those affected by recent changes to child benefit, reminding them they will need to complete a self assessment return for 2012/13 if:
HMRC are considering further changes to the coding out of debts and underpayments, as part of the department’s efforts to improve the collection of debt.
The Revenue can currently code out debts, PAYE underpayments and self assessment balancing payments of up to £3,000. The limit applies to all taxpayers within PAYE, regardless of their income. The taxman would like to make better use of coding out by allowing larger debts to be collected through PAYE from those with higher earnings. The proposed graduated scale is as follows.
'Amnesty' will offer reduced penalty of 10%
The taxpayer submitted his return at the proper time and this was acknowledged by HMRC. A payment on account for the year was also made, but this is currently held as a credit on the account because the return has been lost
Hott Joint Carvery (TC2644)
M Styles (TC2599)
A client’s 2011 self-assessment tax return was completed on the basis that a student loan had been repaid in full. This was incorrect, although the loan has since been repaid. HMRC are demanding full payment and a 15% penalty
Paul & Annette Galbraith t/a Galbraith Ceramics (TC2639)
R Fergus (TC2452)