Can HMRC make us pay all at once?

lfc-lass_2

Hi

Hope somebody could help us with this one. About 4 years ago my husband filled out a self assessment form which he filled out to the best of his ability. HMRC wrote back with a cheque for overpaid tax for £3500. Husband did not think anymore of this and was happy to receive the cheque. About 18 months later HMRC said that they should not of sent the cheque and requested the money back. HMRC stated that it was because of a descrepancy with a box wrongly ticked on the self assessment form about Seamans Earnings Deductions (which my husband actually stated that he wasn't sure how to fill in and included his p60 for them to work it out). HMRC actually admitted mistakes on their behalf and my husband took it to an appeal which he lost. They have said that they are not adding interest because of their mistakes but have requested that the full amount is paid back at once. My husband telephoned the repayment department to ask if he could pay the amount over 12 months but was told by some Jobsworth that he should consider getting a bank loan to pay it off. My husband has accepted the fact that he will have to pay but can we request to pay over 12 months or so or can they requst the whole amount at once?

mtem74

you can always ask for time to pay but HMRC decides whether or not they are happy for you to do so. Best thing is to try again and make a case as to why you need the extra time.
At least they are not charging you interest and have admitted their mistake. might not be much but it's something

larryuk

I have experience with them and your best bet is to give them, as mtem74 said, a "time to pay" offer. Provide a full schedule of what you can pay and provide a copy of bank statements to prove you do not have it readily available to clear in one go. Try to be as precise as possible, right down to the exact day of the month you want to pay and how much. They do not have to accept but the above will certainly help your chances!

jimmo

In most of my days as a taxman there were 2 separate structures. The Inspector of Taxes was responsible for determining the amount of Tax due. The Collector of Taxes was responsible for getting the money due from you.
In practical terms, the 2 separate structures still exist. That could be really important to you.
To be honest, I am really struggling to understand how your husband’s tax affairs got to this situation but the fact that they have “admitted mistakes on their behalf” and “they have said they are not adding interest because of their mistakes” suggests to me that the Inspector of Taxes office is embarrassed because of the mistakes they have made. However, the tax is still payable, despite their mistakes.
The Collector of Taxes, on the other hand, has not made any mistakes. He has simply been told by the Inspector of Taxes that £3,500 is due and payable.
He is therefore simply doing his job and is right to do so. He really isn’t being a Jobsworth but he is doing his job.
As your husband has been through an Appeal (and lost) I rather think that legally the tax is payable now and if you can negotiate time to pay with the Collector of Taxes there will be interest charges for the tax paid late (from now).
However, if you go back to the Inspector of Taxes, who is the one embarrassed by his mistake, there is just a chance that he might agree to collect the £3,500 by adjusting your husband’s coding for the next 1, 2 or 3 years.
If you succeed there will be no interest charges at all.
I really think the key issue here is “people skills”.
On the one hand, the tax is due now. On the other, the Inspector of Taxes has admitted his failure and is embarrassed by that.
Talk to the person who actually took the appeal to the Commissioners. You should already have a name and phone number for that person.

Hazzo

Just because they have asked for it back, doesn't mean that they are entitled to it. I suggest that in the first instance you should immediately write in a short and sweet fashion to the Tax Office and simply say:

"Dear Sir,
In response to your demand for payment of the tax debt of £xxx, please consider my case for relief under Extra Statutory Concession A19.
Yours faithfully"

It appears to me that the appeal process may have been biased in their favour especially if your husband represented himself. They are duty bound to consider writing off the debt on the basis of facts 'already in their possession' and I believe you have a good case for pursuing this. See the following link and read section A19

http://www.hmrc.gov.uk/specialist/esc.pdf

Do NOT give up! and do come back and let us know what they say should you decide to pursue it.

chriiiiiiiis

"HMRC stated that it was because of a descrepancy with a box wrongly ticked on the self assessment form about Seamans Earnings Deductions (which my husband actually stated that he wasn't sure how to fill in and included his p60 for them to work it out)..."

If your husband had completed his return properly four years ago, you wouldn't have this problem now. Sending a P60 as a substitue for not completing a box is not okay.

Self Assessment is called just that for a reason - it is not HMRCs job to complete the return for you.

Robertpestonrules

ISnt' there a dedicated Time To Pay Team to call.

It's all very well to say people should complete their returns properly - but it is not always straightforward - why else would there be so many tax advisors and accountants.

mtem74

just a thought but do you have some dates of what happend when?

if the taxman isn't charging interest it's because they know they made a mistake, and depending upon how long it took them to notice 'their' mistake, you may get away with a section A19. It's a long shot but it's your choice.

Only thing going against it is the fact you admit your hubby also didn't fill his return in correctly.

WestHaddon

chriiiiiiiis wrote: »

"HMRC stated that it was because of a
Self Assessment is called just that for a reason - it is not HMRCs job to complete the return for you.

It is their job to check it!

People, wake up!
We should be forcing our elected represntatives to simplify the tax laws. If they do not then elect those who will.:idea:

We have the power to change things in our hands.


"People should not be afraid of the government. The government should be afraid of the people" V

jimmo

WestHaddon wrote: »

It is their job to check it!

Sadly, in my opinion as a former taxman, no it isn’t.
When you submit a paper Tax Return it will be “processed”. The figures you put in all the boxes will simply be copied onto the computer system. If your figures are wrong you will be charged the additional tax or given the resulting repayment.
Checking comes much later in the process.