The LTAG claim was today granted permission by the High Court for its claim against HMRC to be heard. The date is to be fixed but is anticipated to be early in 2017.
The claim is summarised by both parties as being whether HMRC has the power to compel a taxpayer to repay a sum that had been paid out as a tax repayment without raising an assessment.
The implications are profound since assessments have time limitations which in some instances HMRC has not met.
The Taxes and Management Act is very clear as to what is a legitimate assessment to reclaim payments made taxpayers. It is a formal letter confirming the amount due, rights of appeal and debt management options should they be required.
An assessment is not simply a self assessment statement with an attached request to pay.
At LTAG we have found that in many instances taxpayers have been asked to pay without the proper assessment being served. Had the proper assessment been served then for certain taxpayer circumstances it may be that HMRC are out of time.