By Steve Knowles
How many public organisations do you know who can raise an estimated bill, make you bankrupt on this fictitious liability, and then refuse to remove it when it is proven to be wrong?
HMRC can, and do.
If a taxpayer fails to complete a tax return for a number of years, HMRC will raise determinations. The taxpayer has three years after the filing date for the return to submit it; if they miss this deadline then HMRC’s instructions to staff are very clear:
- If the tax on the return is less than the estimated determination then the determination will stand and the taxpayer has to pay the higher amount.
- If the tax on the return is more than the estimated determination then the return is passed to a compliance unit to consider making a discovery assessment to recover the lost tax.
Heads they win, Tails you lose!
However, there is a way of reducing a determination and your tax advisor will be able to do this for you. Get in touch with us if you would like some simple, no obligation advice.
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The Perils of Ignoring the Tax Man
HMRC: Barking Up the Wrong Tree?
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