HMRC Digital Accounts

The Treasury plugs into digital world with tax system upgrade.


As part of the 2015 Budget, George Osborne revealed plans to abolish the current annual tax payment system. This is to be replaced with digital tax accounts for small businesses and individuals. The Treasury have deemed the present arrangements “complex, costly and time-consuming” with 1.8 million companies and 11 million individual taxpayers submitting annual tax returns and it considers that the digital upgrade will simplify things considerably.


Accessibility and accuracy seem to be the two biggest selling points of the digital switch. The new tax account will resemble an online bank account that you can access on any piece of technology – smartphone, iPAd, computer – at any time of day or night.


Accuracy will be increased as businesses can stream their latest financial details to HMRC, which means they no longer base tax bills on old information. Your account will receive electronic notifications from HMRC regarding new information they gather from your employer, banks, pension providers and the Department for Work and Pensions. The combination of up-to-date financial details should see taxpayers receive extremely accurate tax calculations from HMRC.


Another intended bonus of a digitised tax system is that people do not have to ‘pay by a certain date’ but can pay their tax when it is most convenient to them. Taxpayers will have more control over their financial planning with options such as paying tax by direct debit, or in instalments, straight from your bank account.

A skeleton timetable for the roll out of these changes has been discussed. It is expected that the first 10 million individual taxpayers and 5 million small businesses will have functioning digital tax accounts by early 2016. By 2017 a first group of taxpayers with uncomplicated tax circumstances, an unspecified number, will not have to file an annual tax return. It is planned that a total switch over to digital will be up and running by 2020. This will see 55 million individual taxpayers with an online tax account. 5 million businesses will be able to connect their new tax account to their existing book-keeping data and enter relevant information when it is convenient.


If you don’t use the online system for filing your tax return now, the Treasury have provided assurance that you can still file a paper tax return if that is your preferred option. Better the devil you know?

Tony Shanks




NIPSA Membership Tax Relief

Are you a member of the Northern Ireland Public Service Alliance?


Do you know what tax rebates you’re entitled to claim on your work expenses?


You should find out more to make sure you aren’t missing out.


The Down Side

Let’s get this bit over and done with first – you cannot claim a tax rebate on your NIPSA membership fees because there is no agreement established between NIPSA and HMRC – unlike other professional bodies like the NMC.

This is despite the fact that NIPSA is the largest trade union in Northern Ireland with more than 45,000 members. The jobs you do in civil and public services are crucial to the efficient functioning of the entire country – getting some tax relief on fees would be a nice thank you.

If an agreement is made between HMRC and NIPSA in the future allowing tax relief on membership fees we will be the first to let you know.



The Up Side!

NIPSA represents an amazing breadth of professionals so there is probably at least one work expenses tax relief that applies to you.

Which of these work expenses do you pay?

  • Washing your own work uniform where no laundry facilities are provided by your employer.
  • Buying equipment, tools and protective clothing for work.
  • Carrying the cost of tights and shoes that are part of work uniform, particularly for our healthcare workers.
  • Working from home when it is stipulated within your work contract.
  • The fees for some professional bodies and subscriptions to professional publications.
  • Using your own vehicle to travel between places of work is part of your job description. (This does not mean a daily commute between your home and a permanent workplace.)


Whether you are part of the Civil Service Group or the Public Officers group your eligibility remains the same. Regardless of your pay grade or if you work in an office or on a ward, you can legitimately make a claim for tax that you have overpaid.



More good news!

  • You get 20% or 40% of your work expenses back, depending on the rate of tax you currently pay.
  • We can make a backdated initial claim for up to 4 years’ worth of work expenses. There is even a small interest payment on previous years!
  • The first thing we do is check your tax code, so if you have made past tax rebate claims we will see whether or not your tax relief entitlement has already been applied.
  • After making a claim, you will get a new tax code that ensures you pay less tax in the future.
  • This is a private arrangement between you and HMRC, your employer is not involved and is not liable to pay any rebate. You have already given the money to HMRC, it’s just sitting there waiting for you to come and collect it!



Sounds a bit daunting and time consuming….

That’s where we come in! We have a ‘No Rebate = No Fee’ policy – so no risk to you!

Our accredited accountants will deliver a bespoke claim that ensures you receive the maximum tax rebate that you are entitled to. We can complete all of the paperwork and communicate with the Tax Office on your behalf.

Give us a call on 01228 520477 or email us at You don’t have to spend any of your valuable down time or be frustrated by complicated regulations and endless phone queues.



  1. This is your money.
  2. You MUST make a claim! HMRC cannot automatically give you back your tax overpayment, you need to help them by submitting an official claim.

Tony Shanks

Travel and Subsistence Expenses

Good news for a change!  If you work under PAYE ( not self employed ) you can claim tax relief on travel and subsistence expenses you incur as part of your job.

Of course, it’s not as straightforward as simply filling in a yes/no type form. We have to follow HMRC’s regulations which are subject to interpretation dependent upon each individual’s situation.

These tax laws are written in a language that looks familiar – but words and phrases are assigned very specific and unique definitions by HMRC. It is important to consider each of these rules as they apply to your employment and decide which one’s entitle you to a PAYE expenses tax rebate.


The rules on travel and subsistence expenses when you are employed.

What you definitely cannot claim for…

So, let’s get the bad news over with first! You cannot claim for:

  • Your ordinary daily commute from your home to your permanent workplace, regardless of working hours.
  • Any interest on a loan to purchase your vehicle.
  • Capital allowances to buy a vehicle.



What is a ‘business journey’?

Any expenses you can claim for must be solely part of a business journey. HMRC has two possible definitions for this:

  • If your job demands you to travel to a workplace that is not a usual, daily commute. This must not be a personal choice of place and must not be anything to do with private travel arrangements.
  • If your work requires you to move between locations as part of your job description.



Mileage allowance

This applies to usage of private cars, vans or motorcycles that you use to travel for work. HMRC has decided a figure that they consider to be an ‘approved payment’ to cover mileage costs and this is what you can claim back, regardless of the actual amount you have paid. Anything you get over the approved amount is taxable and not eligible for a tax rebate.

If your employer does not pay you the full approved mileage allowance, or pays you and the allowance is taxed, or you don’t get any at all, you can claim up to the full approved payment amount. This stands even if you did not actually pay the approved payment amount. Guess it’s a case of ‘you win some, you lose some’!



Temporary Workplace

A workplace is considered to be ‘temporary’ if you work there for less than 24 months and you spend less than 40% of your work time there. HMRC call this a workplace that you attend “for a limited duration” or “for a temporary purpose”. If your daily journey fulfils these criteria then you can make a claim for your costs.



Permanent Workplace

As already stated, your usual daily journey from home to work is not considered a business journey. However there are a couple of instances in which you may have eligible travel costs.

  • If part of your job is providing an emergency call-out service then you may be able to claim the cost of certain journeys. If you start working before embarking on the journey, then you are allowed to claim travel costs. For example, if you are giving medical advice to a client over the phone as you are preparing to leave for your workplace in response to that call.
  • If you undertake infrequent journeys from home to a different place in the fulfilment of your duties then you can claim the actual travel expenses you pay. Don’t get too excited – the added proviso is that the journey must be “significantly different” to your usual commute.



Travelling is your job!

If travel is a defining feature of your job then you might be able to make some claims for business travel expenses. But definitions are important again here. Your ‘workplace’ becomes the physical area in which your responsibilities lie. Therefore your ‘ordinary commute’ is considered to be from your home to the edge of that mapped area. For example, if you are a regional manager, your commute is from your house to anywhere up to the boundaries of your region. Leaving you unable in some cases to claim the travel costs as a business expense.



Subsistence Costs

A ‘subsistence’ cost basically means food and accommodation expenses that arise from business travel. So, if your journey falls into one of the ‘business travel’ categories above, then you can also claim a “reasonable” amount for your meals and hotel bills. There are some other business travel outlays that are considered, such as business calls. But there are very strict rules about entirely personal expenditure like newspapers, phone calls home and laundry – all things that are definitely not allowable.



Good to know

  • Keep a record of all your business travel journeys – just a note in your diary will suffice. Also record how much your employer pays you in allowances.
  • Keep all receipts for mileage, subsistence items and any other costs you think are business expenses. This evidence will strengthen your claim.
  • We’re here to help. At Tax Rebate Services we will evaluate your individual situation and create a bespoke claim that ensures you receive your full entitlements. Less frustrating, more time efficient and more cost effective than trying to fathom the intricacies of our tax regulations alone!


Give us a call on 01228 520477 or email us at No rebate, no fee, no loss.

Tony Shanks

Medical Protection Society Tax Relief

Are you one of the 290,000 members of the Medical Protection Society?

Did you know that doctors, dentists and healthcare professionals can claim a tax rebate because they pay into the MPS?

In addition to MPS fees there are thousands of medical professionals who are unaware that they are entitled to tax relief on other work expenses. For example a doctor in training or hospital doctor will have a range of work related expenses which is never reimbursed by the NHS.

In which case, you need to enable HMRC to refund the tax on these expenses by submitting an official claim.


What work expenses can I claim?

We have secured many successful claims for countless MPS members. It There is a host of tax regulations which could apply to your individual circumstances and each client’s case is unique.

These are some of the most common to the medical profession:

  • Professional Indemnity Insurance – if it is on HMRC’s list of ‘allowable’ providers, like the Medical Protection Society.
  • The fees for MRCS examinations – a relatively new addition.
  • Equipment or protective clothing that is solely for use in work and the cost of which is not reimbursed by your employer. You usually require receipts as evidence for this type of claim.
  • The subscription fees to professional journals and the cost of belonging to a professional body. There must be an agreement with HMRC for the latter to be applicable. (eg; The GMC.)
  • Using your private vehicle to travel between different work locations. This does not apply to the daily commute between home and a permanent workplace. But consider if your role involves you to travel to different clinics, practices, hospitals or even patients’ homes.



What else do I need to know?

  • The value of our average initial claim for our clients is hundreds sometimes thousands of pounds.
  • We can amend of submit your Self Assessment tax return to get back what you are owed
  • A claim can be backdated for 4 years and you get a small amount of interest on these previous years.
  • You can reclaim either 20% or 40% depending on the tax bracket you are in.
  • After an initial claim your tax code will be altered so that you continue to pay less tax into the future.
  • Your employer is in no way liable for any tax rebate you are due. The entire process is between you and HMRC.



What Tax Rebate Services will do…

We pride ourselves on providing excellent quality service that is entirely tailored to your personal situation. Our accredited accountants submit bespoke claims which guarantee the maximum legitimate tax rebate for every client. HMRC are as overworked and understaffed as every other government department, so communications can be frustrating.

We save you the time and effort by acting on your behalf. We complete the paperwork, answer any of HMRC’s questions and keep track of your claim to ensure that it is resolved in a timely fashion. We operate a ‘No rebate, no fee’ policy, so there is no financial risk to you.

Please give us a call on 01228 520477. Or email at

Remember – Your money will not automatically be refunded, you must make an official claim.

Tony Shanks

Royal College of Physicians Tax Relief

Did you know that you can claim tax relief on the fee you pay to belong to the MRCP?


Whether you are a board member, question writer or examiner for the MRCP you will incur work expenses as you fulfil your role. You have the weighty task of upholding the internationally recognised standards of excellence in examinations of medical skills and knowledge.

An issue such as tax rebates for work related expenses seems comparatively unimportant. But these are legitimate entitlements which, in a small way, acknowledge your crucial role in the development of our medical professionals.


Our successful initial claims have secured an average of £900.00 for our clients in the medical professions. Here are some of the most common regulations that apply to your work;

  • Membership of the GMC and some other professional bodies and unions. They must have an agreement with HMRC.
  • Subscriptions to some professional journals.
  • Professional Indemnity Insurance that the HMRC have classified as ‘allowable’.
  • Using a private vehicle for work travel that is not a normal daily commute.
  • MRCS exam fees.
  • Equipment or clothing that has been bought solely for work usage.
  • Working from home, if it is a requirement of your job specification.
  • Subsistence and mileage costs for working away from home, if they are not reimbursed by your employer directly.


How much can I claim?

You can reclaim either 20% or 40% of the amount you have paid in work related expenses, depending on what rate of tax you pay. You can also backdate this claim up to 4 years and receive a small interest payment on this amount. After making the first claim your tax code will change to account for tax relief in the future.


What to do next… 

Our accredited accountants will submit one bespoke claim that encompasses all of your entitlements. We remove the frustration and save your time by completing the paperwork and communicating with HMRC on your behalf.

Our policy is ‘No rebate, no fee’ which means no financial risk to you. If you complete a tax return or have done in the past we can help amend previous returns and submit any future one’s too.

It’s definitely worth the phone call! Talk to us on 01228 520477. Or, if you prefer, email us at


There will not be any automatic refund from HMRC, you must submit an official claim to reclaim your money.

Tony Shanks

HMRC £100 Late Penalty

HMRC’s new proposals are intended to be fairer to the taxpayer by changing “the way that penalties are applied” under Self Assessment. They have acknowledged that the current regulations make “no distinction between a customer who missed a deadline by a day and someone who has made no attempt to comply at all”.


The current self-assessment fines are hefty sums.

  • There’s the much publicised automatic £100 fine for missing the midnight on 31st January deadline. For the last 3 years this has been imposed on those who didn’t even owe any tax!
  • There is cumulative £10 per day for the next 3 months, with a cap of £900.
  • Once 6 months have gone by, you will be penalised whichever is the larger amount between £300 and 5% of your total bill.
  • After 12 months, the latter amount is added on top of your existing fines.


This welcome change of attitude seems to focus most on the automatic £100 late fine, which means that whether you are 1 day or 3 months late you pay the same amount. The Tax Office is considering a “progressive system” which eliminates first offence fines and punishes repeat non-compliers more severely.

This recognises the legitimacy of research which concluded that if fines are perceived to be unfair “this can lead to increased non-compliance” because they “undermine people’s natural motivation to comply”. Not exactly a ground-breaking revelation! But this would save thousands of self – assessment taxpayers the late filing penalty, as well as counteracting prevailing assumptions that we are all trying to avoid paying our fair share of taxes.


As part of this new proposition, HMRC are also considering their definition of ‘reasonable excuses’ for missing the deadline. At the moment you will only be exempt from the fine if you have been a victim of fire, had an unplanned stay in hospital or your spouse dies. A large number of people had to submit their very first self – assessment returns last year due to child benefit cuts for higher rate taxpayers. Currently there is no consideration for finding your first filing tricky, forgetting the deadline or just needing more time to finish the form accurately. HMRC has said that their understanding of acceptable reasons “may need updating to better support those genuinely wanting to comply”.


Member of the Association of the Chartered Certified Accountants, Chas Roy-Chowdhury has an interesting comment, “We seem to have lost sight of the fact that the tax payer is the unpaid administrator of tax compliance and we should be looking to smarter ways of dealing with late filers”. He feels that this would rectify the present system of penalties that are simply government income, gathered unethically.


Stuart Philips of The Private Office (a wealth management firm) agrees with the idea of “targeted fines for those who are intentionally choosing not to comply with self-assessment”. But he does advocate caution as “the removal of the automatic fine could reduce the motivation for people to ensure their returns are submitted on time”.


It is a refreshing, positive change to see HMRC policy makers saying, “We want to consider whether we could better differentiate between deliberate and persistent non-compliers and those who might make an occasional error”. Maybe they could go as far as a reward system instead of punitive penalties. Perhaps a £100 automatic reduction if you meet the deadline next year….?!

Tony Shanks






Tax Rebate Services & MAC Tools

Thanks for everyone at MAC Tools for another fantastic day at Silverstone racecourse at the weekend.

It’s was great to meet so many dealers who we’ve been helping for many years and welcoming new one’s on board.

We’re pleased to be working with more MAC tool providers than ever before. Our partner programe has been on the go for over eight years and has proved a great success for everyone.


Buying tools for work is a must for most mechanics and vehicle technicians. We are committed to getting back the tool tax relief they are due and ensuring the money that they are owed is refunded in full.


Haven’t signed up yet?

The benefits for you

It’s been proven. Offering our service to your clients will:

  • Strengthen your client relationship
  • Encourage your clients to spend more on the tools you sell
  • Help you receive a referral fee of £30 per referred client


The process for you – it’s really simple

1. You distribute our simple claim pack – that’s where your bit ends
2. Our claim forms are returned and checked
3. You get a referral fee of £30 sent to you usually within 48 hours
4. Nothing more for you to do – we deal with the res

If you’re a tool dealer and not using our tool provider partner programme you can find out more here

Or you can call us on 01228 520477 or email

Tony Shanks


HMRC campaign focusing on second incomes

Are you certain about your employment status?

Has your hobby turned into a nice little earner on the side that’s helped you combat some of consequences of the credit crunch?

Do you know that you can be employed and self-employed at the same time? And just because you already pay tax through your employer doesn’t mean that you don’t have to pay tax on your second income?


Be aware

HMRC operate a range of ongoing tax campaigns that investigate on different kinds of taxpayers. Their purpose is to help people establish and maintain accurate tax records and payments. One of its latest campaigns is intended to support the full declaration of any taxpayers’ second income.


The HMRC Second Income Campaign

Just from volunteered information alone, the Tax Office has secured £580million of payments since 2007 and a further £283 million from subsequent investigations. They have also seen through criminal proceedings which concluded with £593,000 paid back to the Treasury and 8 people in jail.


Earning a second income from property rental has come under scrutiny during a previous HMRC campaign, the most recent directs its attention to other sources of a second income. During the recession, which is officially now over, many employed people turned hobbies and skills into essential supplementary earnings for their household.

The need for this extra bit of cash has not receded and if you are one of these second income earners, you need to make yourself aware of the tax regulations. The newest tax office campaign is most interested in the following fields;

  • Hairdressing, personal training, fitness classes, taxiing.
  • Car boot sales and market stalls – selling and buying items
  • Event and party organisation
  • Training provision and consultancy
  • Selling items you have made yourself


If you earn anything from any second income stream then you become ‘self-employed’ as well as ‘employed’. This raises the issue of tax and national insurance payments on your additional income alongside those that you pay through your employer. As an employed UK resident HMRC allow you the chance to volunteer any second income information and eliminate the possibility of heavy fines or even criminal charges. There is even a ‘Second Incomes Voluntary Disclosure Opportunity’ in place so that you can sort out previous years of undeclared self-employment with HMRC and get things shipshape for the future.


In this climate of stricter tax rule enforcement it pays to be transparent with your financial situation. As Mhairi Lees, of Alexander Sloan Chartered Accountants, said, “As tax specialists, our view is that taxpayers should make sure their tax affairs are able to withstand scrutiny”.


I don’t know if I’m self-employed or not! 

It is crucial that you understand your own employment status so that you can abide by the relevant taxation laws. It also influences your employment rights and the benefits to which you may be entitled. Self-employment sometimes emerges slowly over time as a skill or hobby forges a new pathway towards a source of income. Sometimes it is calculated growth, with other employment maintained until the self-employment can take over the generation of a liveable income. Either way, you can be employed and self-employed at the same time and you are responsible for ensuring that you fulfil the requirements of the self-employment tax regulations.


Indicators that you are ‘employed’;

  • Someone else defines you job description and tells you how, where and when to do it.
  • You must fulfil your role by yourself.
  • You are paid a salary or wage weekly or monthly.
  • There is the possibility of a bonus or overtime payments.
  • You have contracted hours of work.
  • You supervise of manage colleagues.


Indicators that you are ‘self-employed’;

  • You define the goods or service you provide.
  • You decide how, where and when you do the work.
  • You have your own money invested and at risk.
  • You provide all the equipment necessary to do the work.
  • If work is deemed unsatisfactory by the client then you have to rectify it at your own cost.
  • You may ask a fixed price for a job without any time boundaries.
  • You can make a profit – and a loss.
  • You often have several clients’ work to do simultaneously and use a business structure to ensure efficiency.
  • You can hire employees or pay for ‘help’ using your own money.


How does this change how I pay Income Tax and National Insurance?

All income is taxable. The clear distinction between employed and self-employed status is who holds responsibility for making those payments to the tax office.



If you are employed by someone else, then it is their responsibility to deduct tax and National Insurance contributions from your pay and record this on your pay statements. This is called the Pay As You Earn (PAYE) system.



If you are self-employed then it is your responsibility to tell HMRC of your second income and pay the tax and National Insurance as required. You do this using a system called Self-Assessment which means you have to complete a Self -Assessment Tax Return form every year.


Remember – you can be both at the same time and “I didn’t know” will not be considered an acceptable excuse for not paying your extra tax.


Confused? Maybe some examples will help.


Molly has three different part-time jobs for which she has to work minimum set hours every week. Two of the jobs pay her monthly and one pays her weekly. All three jobs provide her with pay statements which show the PAYE and National Insurance payments that have been deducted.

Despite having multiple jobs, Molly is not self-employed because all three jobs are working for employers who have the responsibility for her tax and NICs payments.



Jerome has a full-time job from Monday to Friday as a computer technician. He is paid monthly for this and his wage statement shows his NICs and tax deductions. To supplement this income, he also does basic DIY jobs at the week-ends. He decides whether to accept the work, how much he will charge the client and occasionally pays his brother to help him out if he thinks he will overshoot the agree completion deadline. Jerome is both employed as a computer technician and self-employed as an ‘odd job’ person. Jerome fills in a self-assessment tax return every year to make sure he is paying the tax and NICs he owes on this extra work.



Kitty has 12 years of experience working in the financial sector. She now works part-time for a company as a manager and receives a monthly salary from which her tax and NICs have been deducted, as shown on her payslip. As Kitty has an excellent reputation in her field and she is in high demand as a speaker for a variety of audiences in her sector. She does not do this as a representative of the company, but as an individual. Kitty sets her own fee as a speaker and receives all of the payment directly. She also fills in a self-assessment tax return in order to declare the extra money she makes from this additional work. So Kitty is both employed as a financial manager and self-employed as a professional speaker.


What do I need to do if I’m self – employed?

  • Register yourself as self-employed with HMRC by 5th October. This declares the previous tax year’s earnings.
  • Deadlines for filing your self-assessment tax return; on paper – 31st October, online – 31st January. (You need to allow a week for your registration to activate.)
  • Class 2 National Insurance Contributions are payable at a flat weekly rate every 6 months.
  • Class 4 National Insurance Contributions are payable in two instalments on 31st January and July every year. The amount depends on the profit you make.
  • The best way to insure that filling in the Self-Assessment Tax return is as simple as possible is to keep your records in good order. This includes; all income from employment, any tax reliefs you claims (such as charity payments or pension contributions) and any personal income you make (from savings or from selling investments). It also means any receipts from business purchases or travel that could provide evidence for a tax rebate claim.


What Tax Rebate Services will do for taxpayers with a second income

Our AAT accredited accountants have over 30 years’ experience with self-employed small business owners. Our expert knowledge enables us to provide you with a comprehensive service encompassing all of your tax requirements. Please get in touch on 01228 520477 – you don’t have to walk this minefield of regulations alone. Or email us at

Tony Shanks

MOD Tax Rebate Calculator

We’ve just launched the new MOD tax rebate calculator. It’s just for employees of the Ministry of defence and can help you find out what you can claim back from HMRC.

The calculator is specifically aimed at MOD workers who travel from their own homes to a base that HMRC class as temporary workplace.

It’s a good starting point to find out how much you can be owed back.

To find out more you can use our handy MOD tax rebate guide which answers many popular questions.

Tax Rebate Services has been helping MOD staff claim back tax relief on their business mileage costs for many years and can help you work out if you are eligible to claim.

Tony Shanks


HMRC’s new Automatic Penalties

Don’t get caught out by HMRC’s new automatic penalties

Hands up – who missed the Self-Assessment deadline and had to pay the automatic £100 penalty?!

Well, you are definitely not the only one, it’s a nice little earner for HMRC that one!

But the penalty amounts can be far greater and for a much broader range of reasons than you may first imagine – we don’t want you to get caught out.


In 2009 HMRC was granted a host of new powers, including a much broader spectrum of reasons to impose automatic penalties. As well as missing deadlines, these include;

  • Making a mistake on your Self-Assessment tax return.
  • A lack of record keeping or not holding on to your records.
  • If you don’t let HMRC know of a chargeability to tax.
  • Excise duty or VAT related errors.
  • Not filing your return online.


Some of HMRC’s decisions have since been taken to tribunals and are usually upheld by the presiding judge. The following two examples involve huge amounts of money and are a stark warning that HMRC’s rules do stand up in court.


Example 1: Timothy Hutchings V HMRC.

Timothy Hutchings was given a massive £87,533 penalty for a mistake on an Inheritance Tax Return. The amount of the fine is calculated by working out 50% of the amount of tax he avoided paying. He was the beneficiary of the will and was held personally accountable as it was decided his actions were purposeful. The executors were not held liable for the fine. £443,669 was received into Timothy Hutchings account from the deceased’s offshore account 6 months before his death. As this information of a monetary ‘gift’ should have been included in the Inheritance Tax Return, a mistake was made and therefore the consequential penalty was upheld.


Example 2: Lucam Consultancy Ltd. V HMRC

This company received a penalty of £57,768 because they were charging VAT on their invoices before they were officially registered for VAT with HMRC. This went on for 9 months. The company director argued that she had applied to be VAT registered within the allotted time parameters and she had not received any communications from HMRC. The tax office said that they had attempted to get in touch with her in a variety of different ways in order to answer some questions about her application. Judge Hacking ruled that her supporting evidence was lacking, she had deliberately charged the extra VAT without being VAT registered and she had to pay the massive penalty.


In both of these cases the judges concluded that the individuals involved had acted ‘deliberately’ and they couldn’t provide evidence to the contrary. None of us want tax avoiders to get away with not paying their fair share. But now, more than ever, accuracy is of absolute importance in any dealings with HMRC – “that’ll do” has become a very risky strategy. When making an honest mistake can receive a penalty, it’s simply more cost effective to call in an expert.

At Tax Rebate Services, our experts deliver a bespoke tax return service to every client and communicate with HMRC on your behalf.

Not only will we do all of the work, but we can alleviate the stress of the whole process because we guarantee accuracy. Call us on 01228 520477, or email us at

Tony Shanks


Back to Top