Do you trust the Revenue?
After the media reports that around a million people are paying the wrong amount of tax this may not be the perfect time for HMRC to propose they are given an automatic right to collect unpaid (in their opinion!) tax by various measures including offset from other tax credits or repayments; direct from bank accounts; or by set off from salary - all without the need for any court order. Apparently, they say, this will reduce collection costs and bring forward payment dates. I have to say I believe that statement is accurate. I do also have to say that without a hearing you – the taxpayer – will have no right to defend your position.
Are HMRC always correct in the amounts of tax they request? Patently not, but if the tax is forcibly extracted from you how hard will it actually be to get it back? I accept that legally possession is not really 9/10ths of the law but in practise possession is, even if only temporarily, 100% entitlement! HMRC say that they will employ their powers responsibly; I am tempted to point out that they would say that or they may not get them.
Just imagine imagine the scene in the near future, you are sitting at home when HMRC burst in to search your office (because they no longer need a court order to do so) and not liking what they find issue a request for tax, say, in clawing back some of the tax relief you have claimed on the costs of running that office. You disagree and enter into correspondence, HMRC refuse to concede and the next thing you know they tax “due” is taken from your bank account. Is it worth going to court to retrieve a relatively small amount (knowing the same thing can happen again next year)?
HMRCsay they will use these powers as a last resort only. Do you trust them that far? If you think that these proposals are dreadful you need to lobby your local MP, trade association, anyone you can think of to make sure they never come to pass!
Are HMRC always correct in the amounts of tax they request? Patently not, but if the tax is forcibly extracted from you how hard will it actually be to get it back? I accept that legally possession is not really 9/10ths of the law but in practise possession is, even if only temporarily, 100% entitlement! HMRC say that they will employ their powers responsibly; I am tempted to point out that they would say that or they may not get them.
Just imagine imagine the scene in the near future, you are sitting at home when HMRC burst in to search your office (because they no longer need a court order to do so) and not liking what they find issue a request for tax, say, in clawing back some of the tax relief you have claimed on the costs of running that office. You disagree and enter into correspondence, HMRC refuse to concede and the next thing you know they tax “due” is taken from your bank account. Is it worth going to court to retrieve a relatively small amount (knowing the same thing can happen again next year)?
HMRCsay they will use these powers as a last resort only. Do you trust them that far? If you think that these proposals are dreadful you need to lobby your local MP, trade association, anyone you can think of to make sure they never come to pass!
