James Bailey explains how to make use of an aspirational document from the taxman.
If you look on the Gov.uk website at www.gov.uk/government/uploads/system/uploads/attachment_data/file/91888/charter.pdf, you will find the Taxpayers’ Charter.
The Taxpayers’ Charter consists of nine things “you (the taxpayer) can expect from us (HM Revenue & Customs)” and three things “We expect from you”. I used to think the Taxpayers’ Charter was just a meaningless piece of PR, but I have become persuaded that it can in fact be a useful tool in negotiations with HMRC.
However, although many HM Revenue & Customs (HMRC) officials share my instinctive contempt for this document, it is clear that they are under orders to take reference to it seriously. Let me explain:
1. Respect you
This is largely automated – if you receive anything even vaguely contentious from them, it will be accompanied by leaflets informing you of your right to appeal.
2. Help and support you to get things right
There are two important phrases in the explanation that follows this one: “We will process the information you give us as quickly and as accurately as we can” and “We will put mistakes right as quickly as we can”. The next time HMRC takes ages to process a claim or to correct an error, quote this to them – the results will surprise you – and if you are professionally represented, a breach of this promise can form the basis for a claim that HMRC should pay the costs of dealing with their inaccuracy and delay.
3. Treat you as honest
Under this heading, HMRC explains they will “only question what you tell us if we have good reason to”. If HMRC questions your (truthful) explanation in answer to one of their questions, ask them what “good reason” they have for doubting you.
4. Treat you even-handedly
This is much the same as number 1 above, but it can be useful if you are aware of a similar case in which HMRC took a different line to the one they are taking with you.
5. Be professional and act with integrity
I find this very useful, especially the additional explanation which says they will “make sure you are dealt with by people who have the right level of expertise”. It is not part of my job as a tax adviser to provide technical training for HMRC staff, and if the person I am dealing with is clearly out of his depth, this helps get the matter looked at by someone more senior who understands the point at issue.
6. Tackle people who deliberately break the rules and challenge those who bend the rules
Quite right too!
7. Protect your information and respect your privacy
Again, I can only approve!
8. Accept that someone else can represent you
Recently, there has been a worrying trend for HMRC to try to cut out the professional adviser more blatantly than they used to, by writing to or phoning the taxpayer rather than their adviser. I have had occasion to use this promise quite recently – the result was that the enquiry was closed down. I was telephoned by the manager in charge of the offending official with an apology, and asked if I wanted to make an official complaint!
9. Do all we can to keep the cost of dealing with us as low as possible
This is another useful one - both as a foundation for claims for reimbursement of fees incurred through HMRC error, and to resist unreasonable demands for reams of paperwork.
What do they expect from us?
To “be honest”, “respect our staff” and “take care to get things right”.
No quarrel there.
Practical Tip:
The Taxpayer’s Charter may be a pompous and rather silly document, but do not underestimate the effect that quoting it can have.
