HMRC delay causes me to pay more tax?

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0:01 AM, 2nd October 2024, About 2 months ago 3

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I sent Form 17 to HMRC just before Christmas in 2022 to change the ownership of my properties for better tax arrangements.

It took them three months to respond, asking for further documents – including one I had already provided. I resent the document, but it took them over a year to come back, only to say they couldn’t register it because the original form (posted in December 2022) was received too late.

I then posted to them another three 17 forms one week after another (just to be sure they have them without excuses ), it’s been another six months, they still have come back to confirm the registration.

This hugely impacts how I report my tax, I already had to pay more tax due to these endless delays. I already called them, there’s no use.

What can I do?

Thanks,

Mike

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Tags: document submission, Form 17, HMRC, HMRC delay, HMRC issues, Landlord Tax, property ownership change, Property tax, tax arrangements, tax deadlines, tax filing, UK property tax

Comments

havens havens

11:13 AM, 2nd October 2024, About 2 months ago

It seems like you’ve done everything right, but HMRC is just dragging their feet. Have you thought about reaching out on their social media or using their online chat? Sometimes those channels can get quicker responses. If that doesn’t help, consider filing a complaint or contacting the Taxpayer Advocate Service for some support. Keeping a record of everything you’ve sent will be helpful if you need to escalate the issue.

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SimonP

11:19 AM, 2nd October 2024, About 2 months ago

There are two tiers of HMRC Compaints Service.

Start at Tier 1 by writing to:
Complaints Service (PAYE & SA),
HMRC
BX9 1AB

Phone: 03000 526-308

Good luck.

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Simon Lever - Chartered Accountant helping clients get the best returns from their properties

12:12 PM, 2nd October 2024, About 2 months ago

As long as the form 17 is correctly completed and submitted to HMRC there seems to be no reason why you cannot split the income in the required proportion form the date of the declaration.
The full rules are set out in the HMRC Trust, Settlements and Estates Manual from Section TSEM9842 onwards. https://www.gov.uk/hmrc-internal-manuals/trusts-settlements-and-estates-manual/tsem9842 . The language is in plain English and is easy to understand.
There are a number of steps that are required to ensure that the declaration is valid:
• The property must be owned by husband and wife (or in a civil partnership)
• The underlying ownership of the property is different from 50:50 ownership. The split of income is by default 50:50 but can only be changed to the underlying ownership split by Form 17. No other split is allowed.
• The form must state the underlying ownership of the property.
• Ownership cannot be as joint tenants but must be tenants in common.
• Evidence of the ownership proportions must be submitted when submitting Form 17.
• The form must be signed by both spouses/civil partners.
• Form 17, together with supporting documentation, MUST be received by HMRC within 60 days of the date of the last signature on the form. If it is late then a new form will need to be submitted as it then becomes invalid. This is a strict rule which HMRC enforce rigorously.
• If the underlying ownership percentages change then a new From 17 can be submitted. If there is a change in underlying ownership and no new Form 17 is submitted the split of income reverts to 50:50.
Missing out on any of the steps or not completing the form correctly will mean the form is invalid.
Providing the original form was correctly completed and submitted I see no reason why the split of your income cannot take place from the date of the last signature on the form.

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