I have been in an IVA for just under 3 years. In the first year my tax was deducted by the IVA supervisor. In the following year I submitted my tax incorrectly using my old UTR number and spent many calls with the tax office to get the tax transferred across. I have only just got confirmation of this last month. Prior to that it seemed a black hole. However, in December 2012 I realised I needed to re-apply for on-line filing with my new utr. I did so and received my activation code during January. I then tried on 31st January 2013 to submit my filing on-line for the 2012 return. The computer system didn't allow me to do it. I had several calls to the tax office primareley to check that my old tax had been brought across, i also mentioned I couldn't get onto the system. I then received a fine. I then spent further time on the phone to them and they told me that I had used the same email address as was registered to my old UTR that was why the system rejected me getting online. I questioned the fine and was advised I would only be fined £100. I immediately reapplied for the activation code, received it and paid all tax due. However, I then received a penalty through the post for over £1200. When I called them they just said I had been incorrectly advised about the £100 fine and the fine of over a £1200 was now due. I have completed an appeal form which i am sending off. I have three questions: a. Does the tax office ever back down or are they rigid in their penalties or will they see that i had attempted to submit my return. b. I can't pay this fine as I am at the bone with the IVA. Do I have to advise my IVA supervisor and then ask for her to convene a creditors meeting for an adjustment in payments?
c. Does the tax office look at anyone in an IVA as any different to anyone else?
If you write in your appeal exactly what you have said on here, your case will get reviewed and if there is evidence that you have made attempts to file your tax return, the penalties will be cancelled. Your appeal needs to be submitted within 30 days of your penalty notice. The tax office can cancel your penalties. If however, it is not agreed, you will be given the chance to go to tribunal. If your appeal is successful, the penalties will be cancelled. If you are not successful you can contact the accounts office and try to arrange a time to pay agreement which will be so much per month. They will ask for your monthly income and expenditure.
a) Tax officers often agree to reduce or waive penalties if a good enough case is put forward to them. You would appear to have good grounds to appeal the amount they are currently seeking to penalise you by
b) This is unlikely to receive much sympathy from creditors, but I would await the outcome of a) before you look to proposing anything
c) They are perhaps more wary, and will chase you harder for any outstanding returns. They can also be quite harsh in their approach if an IVA subsequently fails.
i suppose my biggest fear it that I let this drift. I applied for the activation code and with full intentions tried to submit on the 31st January 3013. Their system will have a record of me both applying for the activation code and try to submit it. But because I couldn't get on I automatically assumed I was fined £100 and in all honesty probably didn't try again for a couple of months and then still couldn't get on. I had another issue with my previous tax being paid to an old utr and there was no record of this on the tax office system of it being transferred. When I phoned the tax office I focused on the tax not being transferred to my new utr ( which they said was owing) rather than solving the problem of getting on-line to submit my current return as their records indicated I owed money for 2011 as well as 2012. I assumed the issues were linked. It was only later that I solved the problem that I couldn't get on-line because the same email address was being used. ( this took them some time to come to this conclusion at the tax office). I guess I am probably liable for some sort of fine, but do tax inspectors tax all facts into consideration and moderate their demands accordingly or are they very black and white?
They will look to well reasoned arguments, and do genuinely look for a fair way to resolve issues. If you have an accountant, it may be sensible to get them involved with this moving forward.
