New tax intervention letters

A group of tax experts has called on Revenue and Customs to stop trials of new “interventions” for unrepresented taxpayers.

The Low Incomes Tax Reform Group (LITRG) of the Chartered Institute of Taxation claimed that taxpayers involved in the trials who do not have tax advisers were being put in a “very difficult” position because their rights and safeguards were uncertain.

The group called on HMRC to explain what happens if they find something wrong and make an adjustment to someone’s tax return: “Will that be the end of all of HMRC involvement in relation to that matter or will another bit of HMRC approach the same individual in a few months’ time and go over the same ground because they are from another part of the HMRC empire?”

John Andrews, Chairman of the LITRG said: “If someone has a qualified and competent tax adviser acting for them, an intervention will be an inconvenience, though dangerous if the client does not consult the adviser.

“For the unrepresented, there is much more fear, and a lack of understanding as to what HMRC may mean. There is no way of answering back or challenging; no idea of what the intervention may mean for pension credit, tax credits, housing benefit etc. An unequal struggle.”