Is anyone else struggling to receive calculations from HMRC for IHT? They used to be sent out as a matter of course but that doesn’t seem to be the case any more. I have recently received a calculation for Land for an estate but not the Free Estate calculation. I have one estate with Lifetime Gifting where I must have asked for the calculations about 5 times. I complained and the complaint handler said they would send the calculations - a month on and I still don’t have them. Any tips anyone has to overcome this tiresome issue would be gratefully received!!
I can’t offer tips but can confirm that there is definitely a problem. I have requested copy calculations for an estate on four occasion in the last three months, always to be told that they would be sent within 10 working days, and have received nothing.
Is there any way that HMRC can be persuaded to make use of the new-fangled technology of email?!
My understanding, and this is from a while ago, is that they only send calculations as a matter of course if there is a balance outstanding.
They should of course send them as asked but it seems from comments here that they are not.
What we need is a properly funded professional body or think tank to credibly threaten HMRC with judicial review whenever their standard of administration of the tax system falls so seriously below par as to be Wednesbury unreasonable.
Although I have no affinity with nor much liking for the Good Law Project, Mr Maugham and many of the causes they espouse what we need is a Good Tax Project. In practice HMRC is unaccountable because its maladministration is tamely accepted by Government, terrified of the body that collects its income, and JR is beyond the purse of the average taxpayer. Advisers and their clients are understandably reluctant to rock the boat for fear of future non-provable retaliation.
A neutral externally funded body could police on a collective basis the worst shortcomings of HMRC, and when those are attributable to Government failures such as underfunding, negligent oversight or poor recruitment, for both bodies to be named and shamed and made to pay damages to individual taxpayers whose JR actions are funded.
I feel sure that many decent staff members would rejoice at the Hi Heid Yins getting their just desserts for a change by being fixed publicly with responsibility for the mess the shovellers have to shovel daily but without being able to point the finger at the true authors of the public’s frustration. And we do not want Oftax run by chummy Quangocrats staffed by hordes of Blob deadbeats.
Jack Harper
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Bravo Jack.
Fancy becoming an MP ?
The Country needs people like you to kick the system into shape !
I too am struggling to receive calculations from HMRC. In addition I have found that HMRC are now extraordinarily inefficient in dealing with Inheritance Tax Accounts submitted, even in non-taxable estates. I have had to make complaints in at least three estates when I had not received the letter with the unique code for Probate - even the complaints were not responded to quickly.
One of my Executor clients wrote to his MP in desperation after I had made two complaints that had not received a response. His MP presumably passed the letter to the relevant Minister and my client received a grovelling apology from HMRC, followed by the letter with the code being sent to me.
Cliona O’Tuama
Cliona’s outcome is obviously less fraught in the obtaining but it is not certain of being secured and not in any acceptable timescale.
As regards my own affairs I have no hesitation in threatening JR by way of a mandatory order. I send a link to the LSS and the Part 54 CPR specific Pre-action Protocol. The latter requires a letter before action which I am ready to send next because I do mean business.
I had clients understandably too squeamish to go the full tweak of the tiger’s tail so, as they would look stupid if their bluff was called, so we settled for a letter indicating we knew about JR and itemising our, in quotes, “legitimate expectations”. Some clients couldn’t wait to yank the tail.
This illustrates another aspect of HMRC psychopathology, in addition to the hint of general future payback with plausibly deniable malice: the unsubtle weaponisation of taxpayer confidentiality. The loss of this in JR proceedings is as big a deterrent as it is in any other form of tax litigation, and all “in the public interest of open justice, don’t you know. Anonymity application refused” per Cocklecarrot J.
Jack Harper
I’ve been having problems with getting calculations too. Not only that but when I did receive one of them it was incorrect. Twice!
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I received three letters with a unique code from HMRC which stated incorrect figures for the gross and net estates. In one estate the figures were significantly higher than the actual figures. I have still not received a letter with the correct figures in one of those estates, despite asking for it originally in June and sending reminders.
I am now spending a significant amount of my time sending formal complaints to HMRC, both in relation to the letter with the code, whether outstanding or incorrect, and in relation to outstanding calculations. This is time that I should not have to spend. I was told by an officer at HMRC that the Complaints Department has a large backlog. Is anyone surprised?
With regard to the letters with the code, HMRC should revert to the old paper IHT421 system for England and Wales, which worked perfectly well for many years.
Cliona O’Tuama
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We find the same problem always promised 10 days or raised again to technical and nothing appears.
Receipt of funds with no calculation on adjustments so unable to check the accuracy and interest.
Recently a claim for QSR missed and a sleepless night worrying as I had no access to our system until the next morning to check. The tax settled being around £350.000 so if for some reason it had not been settled huge interest charge. It has been settled HMRC had taken the figures from page 1 of the IHT 400 calculation not then end figure as claimed under QSR.
They send unique codes by email so surely the calculations could be considered and perhaps contact by email rather than phone. If so secure mail like stickrobers etc use is the way forward.
Just our firms thoughts and experiences.
I am also a member of the WFIR (Waiting for Inland Revenue). Having resolved a case which had to be reopened from 2017, due to a previously unknown foreign asset coming to light and having paid the additional tax, I was informed last February that their calculations would follow. I need to have these as there were some adjustments resulting in a part refund, which included interest. As one of the beneficiaries died within five years of the deceased QSR applies in that person’s estate but without the calculations it is impossible to work out the additional tax due, and of course interest is running, so the revenue is benefiting from its delays!
It’s not directly on point, but even despite my own experiences with HMRC, I found this shocking