The next step

http www ico gov uk complaints aspx

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https online hmrc gov uk shortforms form dpu sar

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HMRC v Information Commissioner - but you’re the winner

Communication trouble

Speak to any accountant and he’ll tell you that communicating with the Taxman these days is like banging your head against a brick wall. Apparently, HMRC is making an effort to improve matters but there’s little evidence that this is having any effect. The situation for individuals isn’t really any better and in some cases it’s worse. At least accountants have knowledge of the system and know which strings to pull when the Taxman won’t reply, or only partially responds to communications. So what can you do?

Enter SARs

If writing and phoning hasn’t stirred the Taxman into action, you might consider making a “subject access request” (SAR). This is a by-product of the Data Protection Act 1998 (DPA). Essentially it’s a request for details of personal data that’s held in someone else’s records. This includes government departments like HMRC.

What does an SAR cover?

Personal data isn’t restricted to things like your name and address, it can, for example, cover financial transactions which can be linked to you. In fact, SARs have frequently been used as a way to obtain copy bank statements at a low cost (see below about SAR charges). So facts and figures about your tax ought to be covered. But an SAR gives you more. You can request a copy of your tax records in full or in part. This would include notes and comments made by the Taxman during phone conversations or about letters you’ve sent to him.

Trap. You can’t use an SAR to obtain certain information which is exempt from the DPA rules. For example, if the Taxman started an enquiry and you think this might be linked to a disgruntled employee telling tall stories to get back at you, the Taxman can exclude this information from his response to an SAR.

40 is the magic number

The key benefit to an SAR is that the Taxman is obliged to respond to it within 40 days or face the wrath of the Information Commissioner’s Office (ICO). Of course, if he doesn’t stick to this deadline it’s up to you to report the matter to the ICO (see The next step). The Taxman is well aware of the DPA requirements and even has his own standard online SAR you can use to ask for information (see The next step). Although an SAR will cost you £10 you might think this money well spent if this gets the Taxman off his backside, especially if a valuable tax claim is at stake. But is an SAR the right way to go?

A means to an end

An SAR is a request for data, so if it’s information you’re wanting, say copies of self-assessment or VAT statements, you’ll get exactly what you’re after. But if you want the Taxman to take some action, like process a tax refund, then in theory asking for data about this ought not to speed it up. However, we suspect that once he knows he’s under the ICO microscope he’s likely to get on with the job.

For a link to the ICO (TX 12.02.05A) and to HMRC’s online standard SAR (TX 12.02.05B), visit http://tax.indicator.co.uk.