Appeal and postponement applications are tricky. Under Self Assessment, a taxpayer is required to submit a Tax Return within laid down time limits. Special Discovery provisions are available to HMRC where a taxpayer fails to submit a Tax Return. If HMRC disagrees with either the Tax Return or the lack of a Tax Return, HMRC can raise an assessment.
What should appeal and postponement applications contain?
Firstly they must be in writing. Secondly, valid grounds for both the appeal and the postponement application need to be stated. A separate appeal needs to be made against the amounts beings assessed should be made for each type of tax for each tax year and the tax demanded, as opposed to a single entry.
Is a taxpayer governed by any time limits when making an appeal?
Yes. The Taxes Acts lays down strict time limits for making appeals against tax assessments This is typically 30 calendar days from the date of the assessment. A taxpayer is required to state what the grounds of the appeal may be. For many taxpayers, this may simply be for the fact that the amount(s) stated as being taxable for a given year(s) are estimated.
How is the amount to be postponed calculated?
The amount of tax being postponed should be calculated to reflect the additional tax due on any additional amounts being assessed. Interest is payable on a daily basis on any unpaid tax.
Payments on account
It can be difficult to estimate the financial impact of each matter and/or pay any additional amounts of tax due. As an alternative route, consideration might be given to making payments on account instead. By making payments on account, a taxpayer demonstrates their engagement with the process. Payments on account also stops any further interest accruing on the amount paid from the date of payment.
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