Don’t ignore letters from HMRC – even if you think they are wrong

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A recent tax case highlighted the need to send all copies of all HMRC letters to your accountant!

The case was unusually simple for the tribunal to decide.  A taxpayer appealed against penalties for non-submission of a tax return on the grounds no tax return was needed.  HMRC had written asking for a tax return but the taxpayer believed no return was due and therefore ignored the letters.  Often penalties can be appealed to nil or suspended.  Unfortunately disagreeing with HMRC is not a reasonable excuse for ignoring them and the penalties remained payable.

The lesson here is show your accountant any letter you receive from HMRC.  Ideally scan (or photograph) and email any HMRC letters, but you could post them on.

 

As with all of our tax tips and web pages this information is necessarily summarised and of a general nature.  If you would like detailed specific advice please contact us.