With an increasing volume of information and tax advice from HMRC now being offered not face to face, but by telephone, the onus is on the caller to record in writing the tax advice they are given, if they wish to depend on that advice at a later date.
In such situations, problems arise when a taxpayer acts (or refrains from acting) based on undocumented telephone advice, or on their recollection of what HMRC said, according to the Low Incomes Tax Reform Group (LITRG).
It is therefore important to complement direct advice from the Revenue with independent financial advice from a competent financial or taxation expert, said the LITRG.
 “This can become an acute problem for the caller who does not have a professional representative with whom to double-check information and advice they receive from HMRC,†said the LITRG.
This has been proven in recent cases where taxpayers have made a legal challenge to decisions made by HMRC. The clear message from the courts is that taxpayers must have put their question to HMRC in writing, with a clear indication that they are seeking a considered opinion on which they may rely.
As a minimum, taxpayers communicating directly with HMRC should record the date and time of their call, the name of the officer they spoke to, and the details of what was said, particularly from the HMRC side. If the call is made from a landline, taxpayers should also retain their itemised phone bill to prove that the call took place.
In the event of disputes, taxpayers can make a ‘Subject Access Request’, known as an SAR, from the HMRC Data Protection Unit, to receive a CD copy of telephone conversations made between certain dates.
