I recently had an ‘off the wall’ incident, one that I have never seen before in all my years of dealing with HMRC.
The case involved an advisor who was helping their client with a tax problem but as often is the case, the matter took far more time to resolve than expected and funding the agent became more and more of an issue. The matter was taken to Tribunal and proceeded to get delayed again on both sides.
With no funding forthcoming to the agent, the agent was put in an unenviable position – one which many agents may readily have sympathy with having been in similar positions themselves.
Matters eventually came to a head. At which point, HMRC took issue with the agent for the continuing delays. Perhaps because the agent was based in the UK whereas the taxpayers were now all based overseas. HMRC sent the agent a Statement of Costs supported by timesheets totalling over £40,000 for “wasting HMRC’s time”!
Wow.
- Is this a new way of working cases by HMRC?
- Will it become the norm when there are excessive delays?
- What about when those delays are as a result of HMRC and not the taxpayer nor the agent?
- What will be termed excessive and by whom?
Just a word of warning to all agents out there: if there are delays, make sure HMRC know why the delays are beyond your control!
PS– don’t just accept what HMRC say
PPS – Seek advice
PPPS – A Statement of costs is exactly what it says – it is not an invoice to be paid