What is it?
This is where there has been a failure to complete tax returns in a timely fashion where HMRC make “determinations” to assess the tax they think is due. They then write to you with just the bill that they expect you to pay.
Some years can be corrected but, in most instances, where this applies to self-assessment the year may have passed on which the return can be filed. These years cannot be amended, but those still in date once filed can then overturn the determination.
Useful links
Case Study
Background
Our client had received five determinations due to failure to submit the relevant tax returns. They had been self employed but, due to a change in their personal life, were unable to manage either their business or the requirements for self assessment.
Our client had sought help from HMRC who no longer provided anything other than telephone support within their few offices that remained open.
Action
The amounts determined were over inflated above what he might have expected to have earned even if business has grown. We had documentary evidence of letters and phone calls where our client explained their difficulties.
Conclusion
We got the determinations overturned to represent the lower, more accurate income figure. We also got the ones older than three years dismissed due to the timelines. We got all penalties and interest reduced as our client had sought help and got no assistance. The tax bill was reduced from £45,000 to £320.