HMRC Distraint notice

song_mcbun

Hi,

I am self-employed and have ran into arrears with the taxman. Unfortunately I have not had consistent work since May - including a six week dry spell - and as a result an officer from HMRC arrived last week and put a distraint on my vehicle (which is not used for business purposes).

Immediately afterwards, I contacted my former accountant and stumped up the cash for her to examine the total that HMRC were requesting. Two days later she advised me that the figure of £8,400 which they were claiming was massively inflated and in fact I was only £3,100 in arrears.

Yesterday I contacted HMRC and requested that they give me time to sell the vehicle myself - as it is valued at £6-7k and would easily enable me to pay the bill - or whether a payment plan could be agreed as I have contracted work for at least the next 5-6 weeks. They denied the request and re-iterated that the car will be seized this coming Tuesday if the debt is not paid in full.

Essentially, I have two questions: i) The distraint order that was levied against my motor-vehicle states that as a result of me owing £8,400 this order has been filed. Now this figure is grossly inaccurate, does this make the contract null and void? The inaccurate figure makes the whole premise of the order questionable doesn't it?

ii) What, if any, steps of action would you advise that I take next?

Watalie

I suggest you phone your tax office - not the people who have issued the distraint notice (usually some Debt Recovery office) Explain to your own office that the debt is massively inflated and ask them to call off the Debt Recovery people.

I don't know why your Accountant hasn't done this for you....

song_mcbun

Watalie wrote: »

I suggest you phone your tax office - not the people who have issued the distraint notice (usually some Debt Recovery office) Explain to your own office that the debt is massively inflated and ask them to call off the Debt Recovery people.

I don't know why your Accountant hasn't done this for you....

My accountant has contacted the Tax Office in writing notifying them of the revised amount. When I contacted the Debt Recovery office they were aware that a revised amount had been filed surely by inference the Tax Office would also be aware?

Also, I don't think that they care that it is massively inflated, the fact is I still owe them £3k.

Watalie

song_mcbun wrote: »

My accountant has contacted the Tax Office in writing notifying them of the revised amount. When I contacted the Debt Recovery office they were aware that a revised amount had been filed surely by inference the Tax Office would also be aware?

Also, I don't think that they care that it is massively inflated, the fact is I still owe them £3k.

It's just that it's been my experience that the local office are much more helpful than the Debt Recovery people.

song_mcbun

Watalie wrote: »

It's just that it's been my experience that the local office are much more helpful than the Debt Recovery people.

Ok, I acted upon your advice and contacted my Local Office. They acknowledged that the debt now stands at £3100. However, they refused to remove the distraint order. I offered them a repayment scheme whereby I could pay £500pm for 6mths. They refused as I couldn't offer them anything up front.

So still up s***'s creek.

Watalie

song_mcbun wrote: »

Ok, I acted upon your advice and contacted my Local Office. They acknowledged that the debt now stands at £3100. However, they refused to remove the distraint order. I offered them a repayment scheme whereby I could pay £500pm for 6mths. They refused as I couldn't offer them anything up front.

So still up s***'s creek.

Sorry to hear that - they aren't usually so adament

song_mcbun

Update: Ok, after phoning my Local Tax Office and having my £600 pm offer refused because I offered no cash up front I spent the weekend asking family members. I even asked the rep if I could phone back Monday, and he replied 'certainly'.

I managed to raise £800 up front. So phoned Tax Office who now declined stating that the matter had already been passed to the Distraint Office and was out of their hands.

Unbelievable gall of these people. What on earth can I do now?