HMRC threatening letter !!!!

[Chalkitup]

Hello All,

As if I do not have enough problems now this ........

Quick events diary....

I am director of a very small (just me!!!!) limited company started four years ago ...... as you probably know the first accounts are for thirteen months ....... accountant could not submit a thirteen month account as HMRC said it has to be broken down into a twelve month and one month ....... accountant submitted a twelve month and one month account at same time in 2009.

All good ......... three months ago (yes in March 2011) HMRC letter arrives saying one month accounts never submitted in 2009 so pay us £200 penalty.

Accountant says he submitted them both ...... HMRC said he did not .......... I am in the middle ........ I phoned HMRC and explained all this ...... the tax chap at first said all ok as we have got all your accounts ok and he will cancel the penalty ....... then later he changed his tune ...... it seems that he is confused even!!

Anyway letters keep arriving from HMRC saying pay £200 ........... I am on tax credits / benefits and limited company never made a profit and is being wound up on 01/08/11 (has to not trade for three months first).

Today I get HMRC letter saying :-

We will now be focusing our resources on recovering money from you. We are arranging a visit to your premises. We will view your company's goods and assets and list those that we will sell at auction. We strongly advise you to avoid this as it will cost you much more to pay this way and can be embarrassing.

So question:-

How long have HMRC had the right to remove goods without firstly taking the legal route and having a court case to see that their penalty is indeed correct ..... my accountant seems to think that as the limited company never made a profit the penalty should be waived.

[Tuttsi]

Re: HMRC threatening letter !!!!

My Oh is an accountant I will ask him tomorrow for his view and what you should do.

[Riz]

Re: HMRC threatening letter !!!!

http://taxaid.org.uk/guides/tax-debt/enforcement-action

Legally taking possession of goods is a process formerly called “Distraint”, whereby HM Revenue and Customs may take some of your possessions for sale at auction towards settlement of an unpaid tax bill.

HMRC has the legal power to do this without any court order.

[Tuttsi]

Re: HMRC threatening letter !!!!

He was able to reply immediately... so here goes as it was your accountants fault get him to pay the penalty:-

Here is the blurb relating to penalties. It seems to me that the Revenue did not receive a corporation tax return and accounts for the 1 month
overlap period. A corporation tax return known as a CT600 is for a 12 month period. Any overlap period in excess of this ie 1 month means that a corporation tax return needs to be filed virtually at the same time as the first 12 month period. It seems that the return was late for that 1
month, so an automatic penalty was charged and then a further penalty for a further 3 month late period in not filing.ie £200 in all. The law relates to penalties for late filing of a return and accounts must accompany the return.

So far as concerns the company, the Revenue can take what is called "walking possession" and enter premises now to "distrain" on goods.
I would suggest that the gentleman gets all the assets out of the company, then applies himself to have the company struck off. The Revenue
could enter a "stop notice" to block the strike off, but I doubt if they would as they do not often pick up on the strike off these days, due to
reduced civil servants in the system!

Automatic flat-rate penalties for late Company Tax Returns

If you file your Company Tax Return late, your company or organisation will be charged a flat-rate penalty of £100. HMRC will charge a further £100 penalty if you file your return more than three months late.
If your Company Tax Return is late for three or more accounting periods in a row, the initial flat-rate penalty increases to £500 with a further £500 charged if you file your return more than three months late.

[Chalkitup]

Re: HMRC threatening letter !!!!

Wow ..... thanks for the speedy replies.....

Milly88 ...... thank you ............. you are a star ............. the way your OH has explained it is great ............ and I was sort of doing the correct thing re having the company struck off. ...... Please thank your OH very much.

rizzle ........ thank you ........ strangely enough after going to the link you gave I feel a lot happier than I did ......... I can refuse the HMRC chap entry (if he calls at my private address) so giving me more time to sort this all out ....... which I stress is my aim here ...... I am not refusing to pay just for the hell of it but on the other hand I find the HMRC's way of handling this both heavy handed and very confusing ...... plus I feel my accountant, if anyone, could be at fault.

Incidentally the limited company registered address is just an empty shop .... so the HMRC could not list any goods anyway but I am worried they will turn up at my address as I am the only director.

[Chalkitup]

Re: HMRC threatening letter !!!!

Update:

I sent letter to HMRC appealing against the penalty.

Six days later their "Field Operative" turns up at company registered office presumably to obtain goods to auction as threatened in their last letter to me.

I phoned HMRC and was put through to a very helpful lady who I told that I am most annoyed about this situation. She then explained that the HMRC visit to my company premises was partly due to the notes on their database that her colleague had added after a telephone call I had with him a few weeks ago. It was completely in the favour of the HMRC and the exact opposite of what was actually said !!!!! ......... I explained that the notes were wrong and not a true log of what was said ..... obviously she took the HMRC view until I added that I have the particular phone call all recorded and can prove what was actually said. Plus I added that I have other recordings of her colleagues telling me all my company returns have been received and the penalty will be cancelled ----- she said she would call me back after she had read all the notes. I thought I will never hear from her again BUT ten minutes later she calls and explains that their notes and log on my company are very very confusing and they are not sure if returns were received in time or not plus as I have recordings of her colleagues saying they will cancel the penalty she has decided to give a one time concession and cancel the penalty! (How jolly nice …. Even though the penalty should never have been raised in the first place!)

So ..... all settled ....... thank you all who helped.

One little thought for all to remember .......... I would have had a hard job having this sorted in my favour if I did not record all my phone calls and could prove what was actually said. This helped win my case!! The HMRC memory of what is said during a phone call is as bad as the debt collection agencies!!!

[Never-In-Doubt]

Re: HMRC threatening letter !!!!

Sorry for delay mate - awesome result

[mgfboy]

Re: HMRC threatening letter !!!!

Update:

I sent letter to HMRC appealing against the penalty.

Six days later their "Field Operative" turns up at company registered office presumably to obtain goods to auction as threatened in their last letter to me.

I phoned HMRC and was put through to a very helpful lady who I told that I am most annoyed about this situation. She then explained that the HMRC visit to my company premises was partly due to the notes on their database that her colleague had added after a telephone call I had with him a few weeks ago. It was completely in the favour of the HMRC and the exact opposite of what was actually said !!!!! ......... I explained that the notes were wrong and not a true log of what was said ..... obviously she took the HMRC view until I added that I have the particular phone call all recorded and can prove what was actually said. Plus I added that I have other recordings of her colleagues telling me all my company returns have been received and the penalty will be cancelled ----- she said she would call me back after she had read all the notes. I thought I will never hear from her again BUT ten minutes later she calls and explains that their notes and log on my company are very very confusing and they are not sure if returns were received in time or not plus as I have recordings of her colleagues saying they will cancel the penalty she has decided to give a one time concession and cancel the penalty! (How jolly nice …. Even though the penalty should never have been raised in the first place!)

So ..... all settled ....... thank you all who helped.

One little thought for all to remember .......... I would have had a hard job having this sorted in my favour if I did not record all my phone calls and could prove what was actually said. This helped win my case!! The HMRC memory of what is said during a phone call is as bad as the debt collection agencies!!!

Your lucky with that one, it must have killed them and I bet they never actually admitted they where wrong!!!

[garlok]

Re: HMRC threatening letter !!!!

Good result. I was getting my OH to check up and she concurrs with all Millie88 has said.

Garlok

[BBoo]

Re: HMRC threatening letter !!!!

Excellent advice as always folks.

HMRC's powers are truly frightening.