LCS and HMRC request for money

Jibber123

I received a text message on Tuesday from LCS saying I had been sent a letter about my HMRC account and I need to contact them. I assumed it was junk and ignored it as I'm all up to date with HMRC. Then on Wednesday I get a letter from LCS saying I owe HMRC £198. I have just checked my HMRC online account and it quite clearly says on the opening screen when I log in "You pad the right amount of Tax" for all years. I even spoke to HMRC a couple of months ago as I received a letter telling me I had over paid for last year and I was due a refund which I wanted to check was correct before I paid the check in, which it was. I will ring HMRC in the morning to try and find out what's going on.

lordmountararat

Who or what is LCS? I receive many emails and texts claiming I am owed money by, and some that I owe money to, HMRC. They are all fraudulent, so be very careful before you pay out anything.

sourcrates

LCS (or 1st locate ltd) are just one of a number of DCA`s who HMRC use to collect on their behalf.

I assume you will have spoken to HMRC by now.

Jibber123

After almost 10 month of hearing nothing I got another threatening letter from LCS last week demanding payment of £298.17 for an HMRC debt. I immediately rung HMRC again to try and get to the bottom of this and after over and hour wait spoke to a very helpful lady who checked my account and told me it was all correctly paid and I didn't owe anything. Then she said that HMRC changed online systems in 2016-17 and it might be on the old system if its a debt from before April 2016. After countless security checks as my previous HMRC account for pre 2016 was still attached to a previous work email and old address. It took about  half an hour of trying various details and security questions she managed to get into the account and low and behold there was a outstanding debt for £116.32 under paid income tax from 2016/17. It looks like when I changed jobs at the end of 2016, my employer got my last pay check wrong and missed off some overtime. They corrected this the following May 2017 and paid my outstanding wages by sending me a check. They amended my P45/P60 however this seems to have caused a problem for HMRC as if went into the old system as I earnt if before the new system went online. Hence when ever I checked online it always shows I've not got any outstanding debt. I asked the lady if I could pay the £116 to clear the debt and close this off, and she said she would transfer me to the payments department to collect the payment. When I was put through the person told me the debt was £298.17. I asked them to confirm what it was for and was told there was £181.85 of late payment penalties and interest to pay. I refused to pay this as I was completely unaware of any debt, I had spoken to HMRC and checked my current HMRC online account numerous times over the years and there was no money to pay. What should I do next? I don't what this to keep going on as it will keep going up, but HMRC don't seem to care it was not my fault. I don't see why i should pay £185.85 because there computer system messed up.

sourcrates

OK, thanks for the update.

Just for the avoidance of any doubt, all the DCA can do is write to you and call you and ask you to pay, there powers end there.

The debt originates with HMRC not the debt collector, so basically the debt collector can do nothing else to make you pay.

Having said that, HMRC have very wide ranging powers, they can, and will, take any tax or penalties owed, from any future benefits you may be entitled too, up to and including your state pension.

So the only way for you not to pay those charges is to go cap in hand and ask them if on this occasion, as you were not made aware of them, as a gesture of goodwill, would they consider rescinding the fee`s and penalties they have charged you.

You should do this in writing, and as soon as possible.

TripleH

I would pay the outstanding tax amount as soon as you can (the tax itself not the interest) if you don't have a UTR (unique taxpayer reference) number use your NI number as a payment reference.

Use the Self Assessment bank details and keep any acknowledgement of payment you receive.

Then write (by snail mail) to HMRC and politely explain the situation and tell them the date payment was made and the reference you used for payment.

Ask that as you were not notified of the error that late payment penalties change waived in this instance as the error and delay in resolving it were not down to you.

It is better to pay first if you don't dispute the amount as HMRC will want to close the file and are more likely to concede than if you refuse to pay a penny until you get a final amount (interest will continue to accrue on the outstanding tax).

HMRC unlike other organisations are pretty fair and will refund money if you overpay.

BUT please keep details of any payment you make, they can be a nightmare at miss alloccating money and it can take forever to resolve.