HMRC incorrectly chasing wrongful claim

Downthedrain

I run a small business that has been badly affected by Covid and as a result claimed the first four grants under the scheme. In May of last year I was forced into taking a modest pension earlier than planned, as I had no income. Shortly afterwards I read that if one's financial situation subsequently improved, then the grants would need to be paid back. I completed an online HMRC form to voluntarily pay back the first grant but did not actually pay due to the account being reported as 'Child Support'. After more research I established that I was still eligible for the grant, so rang HMRC for clarification.

The lady I spoke to checked with colleagues and confirmed my eligibility to the grants and that they were unaffected by my pension. She asked "Do you still want to pay it back", I said not, if I didn't have to. She said as the repayment was voluntary I did not need to repay it and she'd leave a note on my file. When asked if I needed a reference number or take any other action she said no.

In September I received a letter saying I owed the amount of the first grant that I had voluntarily offered to pay, but the wording was that the amount was wrongfully claimed and I was not entitled to it. I wrote back to appeal to the CEPET department explaining the situation. Since then I've received escalating demands, threats and penalties in writing. I have repeatedly telephoned to explain the situation and to ask if I can speak to someone who is handling my appeal, but I'm refused access to the team and the general help is completely useless.

In the meantime there's an escalating penalty and I'm unable to complete my 20/21 self assessment. I now don't know what to do. I've confirmed with HMRC that my appeal was received but it had originally been sent to the wrong department, despite me addressing it to the CEPET team exactly as per the letter's instructions and being within the timescale for appealing.

Could anyone offer some advice on what I should do next? I'm now running out of time and this whole situation has become a real mess, simply because no-one at HMRC will discuss my appeal.

Jeremy535897

It may be time to seek advice from a tax investigations specialist, if the amount is significant.