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Sam, Accountant
Category: Tax
Satisfied Customers: 14194
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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Please can you help we are banging our heads against a brick

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Please can you help we are banging our heads against a brick wall with HM Revenue regarding our son,
Our son has been serving time in HMP since May 2013 he was only self employed for 2 month nov - dec 2012 earned £1,600, left his self employed job and informed the tax office and then never worked was convicted in May 2013 and since then we have been battling with the HMR about his tax returned form because he didn't fill it in on time, the tax owe him £177.00 but because we have appealed against the delayed tax return he now owes £1122.64 and going up Dailey, the tax office won't deal we me or my husband and the resettlement team at HMP are no longer being funded and my son is serving time until 2016 do we let this case go to court because no one at HMR will take ownership of this case.
Kind regards
Hi Teresa
Thanks for your question
Can you advise why the letter from your son listing his father as having authority to deal with his tax affairs was sent back from HMRC, and whether you are able to fill in the tax return for your son - and asking him to sign it, when on a visit?
Once the return is in with HMRC then
1) its freezes the daily penalty charges and
2) you can appeal on the basis that your son was in prison and unable to deal wit the submission of his tax return in a timely fashion
3) Attempts to sort out this matter with HMRC have been futile, and list dates and times contact has been made with HMRC regarding this, and the difficulties you and your husband have encountered.
Customer: replied 3 years ago.

Hi Sam

Thanks for the reply, in answer to your question why the letter of authority was sent back to us, was because at the time he wrote and sent it to the tax office his current address (prison) did not match the address they had on the their records which was ours.

so the priority became to get my son's address changed to the prison address so he could deal with the tax himself, it was the miss match of address's that caused the delay in the first place when trying to fill the original tax returns in, they originally sent the forms to us, we told them he was in prison and informed them several times by phone and letter what his new address was. I would estimate this took 5-6 months. Therefore once this was sorted the letter of authority became less important as he could now communicate with them.

For the record he has now filled in and sent his self assessment with the help from the prison, however it was late and he missed the window to appeal against the charge of "being late" Hence the late the charge and daily accumulation of interest

Thanks for your response
Did your son resubmit the letter to HMRC advising of the address situation so that HMRC records could be updated and authority for your husband to deal with the issue be implemented? As I would advise this is still a better move, so that your husband can phone the tax office and have the ability to have more access to the telephone to do this.
The fact that it took 5-6 months for HMRC to update your sons address is in itself good grounds to appeal successfully, but that tax return has to be sent in first before an appeal will be considered.
There is no late window to appeal - this is still possible, and should have been considered as HMRC themselves caused much of the delay in getting matters sorted.
This should not have to go as far as court (tribunal)as clearly HMRC have failed to deal with matters in a professional or with any common sense.
They should have accepted the letter of authority as they could clearly see why the change of address had occurred!
Clearly your son will owe no tax, due to the low level of earnings for the year, but the late return position should not get any worse (other than interest added onto the current position) as the return is now in with HMRC.
But get your son to send in a letter of appeal in as a matter of urgency listing all the attempts to resolve this matter with HMRC, the timeline of the end of the tax year and your sons incarceration - the mistakes that HMRC have made with failing to assist with allowing this matter to be resolved sooner.
Also mark this letter (and the envelope) as a compliant, this way it will be reviewed by the complaints team - who will also look at the timeline set - and where HMRC have failed to manage this situation to avoid un-necessary charges.
Let me know if I can be of any further assistance
Sam and other Tax Specialists are ready to help you