Compensation from the taxman

In the last tax year her Majesty’s Revenue and Customs paid out around £170,000 in compensation to complaining taxpayers.

In the tax year 2011/12 over 10,000 taxpayers complained about their treatment by HMRC; and were so successful in their complaints that they were paid compensation by the taxman.  HMRC make these compensatory payments where they believe that there is undue worry or distress caused by their handling of a tax enquiry or for a badly handled complaint.  Not only did HMRC have to pay out the £170,000 in compensation but also, in connection with those complaints, they gave up tax which would have legally been due of around £113,000.

This shows that if you are not happy with the way your case is being dealt with by HMRC it can pay to make a formal complaint.  In the first instance you need to go through HMRC’s internal complaint procedures.  If you are then not satisfied you can take the matter to the independent HMRC Adjudicator.  Even then that isn’t the end of the story.  If you still not satisfied you can approach your MP to make a complaint by the Ombudsman.

However, making a successful complaint and compensation claim against HMRC is not always easy.  For taxpayers who are already hitting their heads against a brick wall in having to deal with their tax affairs the thought of also having to handle a formal complaint can be even more distressing and time-consuming.  Specialist help can be useful; although may not always be cost-effective.

What does this mean for me?

If you feel that your case has been dealt with badly by HMRC; and that and you want the matter resolved; and you feel that you should get some financial redress; it may be worth making a formal complaint.  If you need specialist help Lynam Tax experts have years of experience in this area.
*Call Paul Lynam today for an initial free, confidential, no obligation, discussion:  0845 643 9997*