Tax investigation Problems

blitz_911

Hi, I have had a quick search through the forums and have not come across any help to my problem so I am starting a new thread.

A family member of mine has had a problem the last 2 years with respect to tax position and subsequently the benefits they recieve are being suspended during the investigation.

The original problem happened 3 years ago when their family benefits were stopped because HRC claimed that the Husband (who lives in edinburgh) had a second job 5 days a week in Ipswich which was not being declared. The gentleman is employed in retail and an accountancy firm sorts out the paylips and paye, and he works 6 days a week in a retail shop in edinburgh.

Clearl the notion he has a second undeclared fulltime job 10 hours away is rediculous. however their benefits were suspended whilst an investigation took place. This took over 8 months during which time the family were unable to pay their monthly out goings, recieved bank charges every month and were unable to live.

In the end the investigation concluded that either somebody had gotten hold of the NI number for the husband and was commiting some kind of fraud, or somebody with a similar name and NI worked in ipswich. (this seems again ludicrous to me, surely there are lots of similar ni numbers?!)

The benefits were re-instated, but they were not back datd and they were not compensated for the bank charges incurred due to with held benefits, or for the inconvenience.

This in it self was a huge problem. Then it happened again the next year. And it has just happened again this year. Having spoken to hmrc they have given the same excuse that either someone has the ni details or it is a similar name and ni number the benefits have been stopped whilst a third investigation is underway.

When asked why they cannot look back through the records to see this problem has occured before and was concluded to be an error on the part of hmrc, can they not reliase the same mistake has been made a thrid time in a row. also, when asked if they could change the ni number they were told they were not able to.

Now, with a second baby due in the immediate future, their benefits have been stopped pending the results of the same investigation a third time round.

My queries if you could answer them please:

-does anybody know what is happenening

- why do the benefits have to be stopped, can they not continue to pay them and if they have been paid in error to have to return them to hmrc

- is it right that this mistake can be made and the benefits are not back dated and no compensation for the bank charges and inconvenience is due

- are you able to take the matter to a small claims court to reover the benefits, cost of charges and compensation for distress.

- is there anything we can be doing to prevent this from happeneing again?

Thanks verymuch for your advice, i apologise for this complicated issue!

patman99

Didn't want to read and run. Not sure whether or not it is worth it, but it might be worth them contacting their MP for assistance in raising a complaint against HMRC and their incompetence.

I am also wondering whether or not they would have any legal grounds for a claim for the lost benefits and incurred bank charges. Might be worth contacting CAB.

blitz_911

patman99 wrote: »

Didn't want to read and run. Not sure whether or not it is worth it, but it might be worth them contacting their MP for assistance in raising a complaint against HMRC and their incompetence.

I am also wondering whether or not they would have any legal grounds for a claim for the lost benefits and incurred bank charges. Might be worth contacting CAB.

They have already asked CAB who said there is nothing they can do, despite the error is on the part of hmrc. I think they have spoken to their mp but im not sure what the outcome of that is.

If this was a private company, this kind of behavior would be unacceptable, I dont see why there is no recompense because it is hmrc. I was hoping we could go to the financial ombudsman or something.

More than anything its the months of distress of trying to get by when you genuinely need that assistance, being driven into debt by no fault of your own and the fact they have done this 3 times now.

whitewing

Does he work in an independent business (ie a small, local shop) rather than a big chain?

Is there any chance that the employer could ask their accountants for some ideas (after all, it is a lot of stress and worry for the employee).

xylophone

http://www.hmrc.gov.uk/complaints-appeals/how-to-complain/make-complaint.htm

Your relative should set out the full facts in writing- he should take a copy for his records.

He should send the letter special delivery.

blitz_911

Hi, thanks for the replies.

I dont know if they have submitted a formal complaint to hmrc but i will get themto do that. Another member of the family is an accountant (not the employees accountant, just an accountant), and he deals with their correspondance to hmrc. I would imagine he has tried to confirm the tax details given to the tax office, I will ask if this has been done.

He does work a small independant business and they have checked with their accountant who has confirmed that all the tax details are correct, but I dont think he has offered any other suggestions of what we can do.

xylophone - thank you for that link, I will send it on to them to make a formal complaint. I believe that his may be the only means of getting anything done.

Horseunderwater

This kind of mistake can easily happen - it happened to me, but I did not at that time get any benefit other than JSA. No overpayment. They were most surprised to find me at home as I was working in Portsmouth, which was why the investigator turned up on the doorstep. They had linked in a P45 with no NIno from down there to my record up here. Name was similar 2nd initial different. This was in the days before tax records were fully automated like they are now. Or it might be ID theft? Worth them checking noddle to see if anything odd shows up. It can happen. Sincerely hope they get sorted.

anmarj

blitz_911 wrote: »

- is there anything we can be doing to prevent this from happeneing again?

the only real way to stop it happening is for the other person to be tracked down and let them know they are using the wrong NI, but the family are not going to be given the details of the other person and there is even no guarantee that the HMRC would have details either. Using incorrect NI is common, i use to deal with them for the DWP and it was either the person swapping numbers/letters about or being advised by tax office they were using the wrong number or the wrong number had been traced by JC as they did not do enough checks. Best one has to be the wife using the husband NI for working, and when she claimed SP it came to light, she did say to me she did wonder why her Winter Fuel payment letter had a different number on it

Could he even be using the wrong NI?

Morglin

This site might help:


http://taxaid.org.uk/info/tax-credits


Lin

whitewing

Has your husband checked the national insurance number that his current company has against his national insurance card or against payslips or P60s from an earlier job?

Perhaps your husband's NI number has been entered incorrectly in this job and everyone is assuming his is right and the Ipswich one is wrong.