hmrc have cancelled dd - any ideas why? please help!!

flashgirl

we are contesting a tax bill from hmrc, who put my partner on the wrong tax code (a series of silly mistakes).

we have a dd to repay the deficit coming out of our current account, however i have just found out that hmrc have cancelled the dd. does anyone know what this means?

could it be...
1. that they may have finally admitted liability, even though they havent yet written to us (wishful thinking)
2. that they are amending the dd amount and will put the amount up?

i know the solution is to call them, but wondered if anyone can shed light before i do!!

many thanks

laura

hollybear_2

they only let it run for so long and then it stops they did this to me

Mikeyorks

Bit of detail missing ........ in that I can't see how you have a DD to repay a PAYE underpayment? They either code it out or is it actually in SA?
And if they're varying the amount - they don't cancel it they just write and tell you the new value ..... as all DD mandates are for variable amounts.

flashgirl

Mikeyorks wrote: »

Bit of detail missing ........ in that I can't see how you have a DD to repay a PAYE underpayment? They either code it out or is it actually in SA?
And if they're varying the amount - they don't cancel it they just write and tell you the new value ..... as all DD mandates are for variable amounts.

sorry i dont understand this (thicko).

if this is of any use - this is an ongoing issue and we set up a payment plan to repay 200 a month since sept last year (we are also paying money from partners wage in addition - but the whole amount is a substantial amount of money accumulated over several years).

the dd has gone out of the account each month, apart from this months - so i called the bank who said hmrc had cancelled the dd. as we have been contesting this (we have an accountant to fight it for us on a no win no fee basis - and so their contact hasnt been amazing). hmrc havent written to us to advise us of changes to dd etc,; theyve simply cancelled it.

sorry if this doesnt shed any light or if i'm not providing correct info - its all a little complicated!!)

we can call hmrc tomorrow, but just wondered if anyone else has had this happen to them :-)

many thanks

Mikeyorks

Sorry - not intending to confuse.

DDs are normally only accepted against a specific amount (ie an 'assessed' tax such as Self Assessment) PAYE is not normally so regarded and I've only ever seen DD used by employers to pay their PAYE.

But you give the bit I was missing in the fact this liability is several years old - so I suspect they originally assessed it as a formal PAYE underpayment in order to start recovery proceedings. But have accepted your offer instead - and they do tend to require any arrangement extending over 3 payments to be made via DD.

But - lengthy way to say they do not normally cancel DDs unless the liability no longer exists. You will only get the full answer by ringing the office you set up the arrangement with ........ or (hopefully) talking to the Acct.