Self Assessment Tax Return checks 2011-12 onwards

[MercladUK]

So I have received a very detailed request for information under Section 9A for 2012-13, which AML are responding to as a group.

I have now received a request for information for the previous year based on the alleged inaccuracies of the 12-13 return. This is not under any reference (ie section 9A) but states that if I do not respond then they may make an assessment under section 29.

Two questions:

1, I take it they are too late for a Section 9A enquiry, therefore fishing with this email? Is this correct? And the Section 29 can be appealed if received?
2, This wasn't DOTAS registered so therefore exempt from the current APN regime until a Follower notice ?

Any information greatly received

[webberg]

So I have received a very detailed request for information under Section 9A for 2012-13, which AML are responding to as a group.

I have now received a request for information for the previous year based on the alleged inaccuracies of the 12-13 return. This is not under any reference (ie section 9A) but states that if I do not respond then they may make an assessment under section 29.

Two questions:

1, I take it they are too late for a Section 9A enquiry, therefore fishing with this email? Is this correct? And the Section 29 can be appealed if received?
2, This wasn't DOTAS registered so therefore exempt from the current APN regime until a Follower notice ?

Any information greatly received

1. Yes, yes and yes.
2. Yes

Failure to respond to a deadline that has no statutory power is not any form of offence. Normally a polite response along the lines of "please explain under what powers you now request information" should be enough to begin with.

Once you have an assessment you have additional grounds for debate, i.e. was there a discovery? (Not going further on that question here as it's too long).

Be warned that once the assessment is out, HMRC does have power to force compliance under penalty of heavy fines.

[MercladUK]

1. Yes, yes and yes.
2. Yes

Failure to respond to a deadline that has no statutory power is not any form of offence. Normally a polite response along the lines of "please explain under what powers you now request information" should be enough to begin with.

Once you have an assessment you have additional grounds for debate, i.e. was there a discovery? (Not going further on that question here as it's too long).

Be warned that once the assessment is out, HMRC does have power to force compliance under penalty of heavy fines.

Thanks Webberg, at least I understand the process. That last sentence was somewhat worrying though..

[creativity]

Am I right in saying that HMRC are unable to open an enquiry four years after HMRC received your SA?
Of course they could but they will be out of time and therefore they have no legal powers to enforce. Its not evasion afteral.

[webberg]

Am I right in saying that HMRC are unable to open an enquiry four years after HMRC received your SA?
Of course they could but they will be out of time and therefore they have no legal powers to enforce. Its not evasion afteral.

The normal "discovery" time limit is 4 years from the end of the year of assessment unless there is an allegation of deliberate behaviour that might lead to fraud or perhaps a less serious charge.

[Tomandjerry]

So I got an enquiry letter about year 12-13 relating to self-assessment. Following exchanges of letters received calculations for 11-12, 12-13 and 13-14.

All without reference to a court case, so I asked and there isn't one. So I asked for confirmation that the enquiry would be closed in 1 year if there still no ruling. The response I got was that the enquiry would remain open until a case was proven.

Should I just send in a T245 asking for closure - or is this a bad idea?

[MercladUK]

So I got an enquiry letter about year 12-13 relating to self-assessment. Following exchanges of letters received calculations for 11-12, 12-13 and 13-14.

All without reference to a court case, so I asked and there isn't one. So I asked for confirmation that the enquiry would be closed in 1 year if there still no ruling. The response I got was that the enquiry would remain open until a case was proven.

Should I just send in a T245 asking for closure - or is this a bad idea?

Hi

I take it you immediately submitted appeals? Can I ask who you were with in these years?

Also T245 can you expand on what this form is?

[Tomandjerry]

These are all held on appeal, but no date for closure. The T245 form can be submitted by a taxpayer to request closure, for a copy see the Closure application section on this page
https://www.gov.uk/tax-tribunal
The query is whether it's a good idea to submit one or whether it will just cause me pain.

[GB9]

Walked through the door from being on holiday this evening and received what sounds like the same letter. Suggested I hadn't paid the correct dividend tax for 10-11, 11-12, 12-13.

They enclosed the leaflet around general compliance check but no mention of whether I had considered IR35.

[webberg]

These are all held on appeal, but no date for closure. The T245 form can be submitted by a taxpayer to request closure, for a copy see the Closure application section on this page
https://www.gov.uk/tax-tribunal
The query is whether it's a good idea to submit one or whether it will just cause me pain.

Applying for a closure notice will almost certainly result in HMRC saying that the loans are taxable.

The only way forward from there is to either take it to Court and argue the point or negotiate.

Litigating on your own, with no support, is a very brave move. It may also be that a Court will not want to have several hundred cases on the same point, so will try to select one representative case. It may be you, it may be somebody else. HMRC will want somebody with poor facts and execution. if they get that and set a precedent, the whole pack of cards comes down.

frustrating as it may be, unless you have a pressing desire to get to Court and/or the necessary skills or resources to prosecute a case professionally, I'd say let HMRC make the running and let them take their time over settling the enquiry.