Have you ever felt unfairly treated by the HMRC? If so, then you must do something about it experts are telling contractors.
This comes after new figures recently released have shown us that 6 in 10 challenges against HRMC are successful.
The exact figure is 57%, but what it tells every contractor out there is that over half the time the initial ruling is wrong, and you should do what you can to challenge the decision and get a new HMRC official to look at everything.
I always tell contractors and self employed people in general, that since 2010 you have been able to challenge any decision made by an HRMC official, and that a new officer will then review everything.
However, it seems that many people are not even aware this is possible, which means they end up accepting the decision even though it could very well be wrong.
So how do you go about making a claim? One way of course is to simply contact the HMRC by phone, email or letter, and then start the process that way. However, this is usually very slow, and usually takers a while to get anywhere.
Another way is to hire a law firm who specialise in these kind of situations. They can advise you on whether or not your claim is worthwhile, as well as the best way forward.
One thing I think the HMRC should be commended for is their willingness to review their own decisions, and then if in the wrong, make it right.
There are many large organisations that hide away and never want to own up to their mistakes, but it seems that HMRC are not one of these. Sure, they are not perfect, but it’s good to know they are willing to give contractors a fair review.
Of course, not everything is straight forward though, and regular readers of this blog will know that I have reported on the new tax reporting scheme the HRMC are coming up with, where contractors are expected to file their tax returns quarterly instead of yearly.
My concern with this new system is that doing your tax 4 times a year is just too much, and that it will lead to more confusion and complaints than anything else.
For this reason, I think we are going to be seeing more decisions from the HMRC challenged by contractors and self employed people in general, as this new system is going to lead to more wrong decisions in my opinion.
So if you believe you have a claim then don’t put it off about challenging the HMRC. If they have got the decision wrong there is a good chance you will be successful.