HMRC THREATENING

michug

I submitted my self assessment correctly and on time however a mistake of £26,300 was made by HMRC in the capital gains section of their tax calculation amounting to whereas they had not taken off the 17 years private resident relief amounting to £91,412, and they said I owed them nearly £30,000.  Despite all the correct information being given to HMRC we were then asked to submit an ammendment.  We did so but 4 months later we have not yet received a new tax calculation however we have received threatening letters and penalties plus interest amounting to £2000 and now a debt collection agency is turning up at my door demanding payment and threatening action. We have written and called HMRC on numerous occasions but have been told to ignore the threats until the re-calculation has been dealt with. I have asked for the threats to stop as it's causing a great deal of distress to a disabled man with cancer on the grounds of reasonable adjustment as specified under the discrimination act but HMRC are refusing to make reasonable adjustment of any kind and today we have been advised by HMRC to pay the the £31,000 that we do not owe and claim it back at a later date. But I only get £12,000 before tax from my pension and I am unable to work due to my cancer and I shouldn't have to pay this figure just to ultimately claim it back when I do not owe it. I am fully paid up and do not owe anything for the 2023/2024 tax year and it is unreasonable for HMRC to ask me to pay tens of thousands of pounds that I do not owe. 

eskbanker

Sounds like time to involve your local MP?

Bookworm225

how did HMRC make the mistake?
if they did then you have a "reasonable" excuse...

Disagree with a tax decision or penalty: Reasonable excuses - GOV.UK

CH160200 - Reasonable excuse: what ‘reasonable excuse’ means - HMRC internal manual - GOV.UK

michug

michug

We did appeal, but they turned it down

Dazed_and_C0nfused

michug said:

We did appeal, but they turned it down

Have you been subject to a formal investigation?

If not did you file your Self Assessment return online?

michug

No, we haven't been Subject to a formal investigation.  And I did the paper self assessment,  the same as I've done since 2007

Hoenir

Could there be any reason why the HMRC would have reason to query the private resident relief you've claimed ? 

mybestattempt

michug said:

I submitted my self assessment correctly and on time however a mistake of £26,300 was made by HMRC in the capital gains section of their tax calculation amounting to whereas they had not taken off the 17 years private resident relief amounting to £91,412, and they said I owed them nearly £30,000.  Despite all the correct information being given to HMRC we were then asked to submit an ammendment.  We did so but 4 months later we have not yet received a new tax calculation however we have received threatening letters and penalties plus interest amounting to £2000 and now a debt collection agency is turning up at my door demanding payment and threatening action. We have written and called HMRC on numerous occasions but have been told to ignore the threats until the re-calculation has been dealt with. I have asked for the threats to stop as it's causing a great deal of distress to a disabled man with cancer on the grounds of reasonable adjustment as specified under the discrimination act but HMRC are refusing to make reasonable adjustment of any kind and today we have been advised by HMRC to pay the the £31,000 that we do not owe and claim it back at a later date. But I only get £12,000 before tax from my pension and I am unable to work due to my cancer and I shouldn't have to pay this figure just to ultimately claim it back when I do not owe it. I am fully paid up and do not owe anything for the 2023/2024 tax year and it is unreasonable for HMRC to ask me to pay tens of thousands of pounds that I do not owe.

I don't understand why, if HMRC made a mistake when they captured your 2023/24 paper return onto your self assessment record, they couldn't correct it themselves.

If your original return was correct how/why could you possibly amend it?

Also, I would expect if they know the tax being pursued isn't due why they haven't stoodover/postponed collection until the correct calculation is made.

What did you make an appeal against?

All that said, clearly if you are being asked to pay tax not due because of an error by HMRC and they are delaying resolution then you need to escalate your complaint, possibly to your MP.

michug

Hoenir said:

Could there be any reason why the HMRC would have reason to query the private resident relief you've claimed ? 

No, not at all. The capital gains tax on the house was all paid and sorted in August of 2023, so there is no problem in that respect. 

mybestattempt

michug said:

Hoenir said:

Could there be any reason why the HMRC would have reason to query the private resident relief you've claimed ? 

No, not at all. The capital gains tax on the house was all paid and sorted in August of 2023, so there is no problem in that respect. 

Which makes the situation more difficult to understand.

So, you reported the gain and paid the tax due in August 2023. Did you then include that same gain along with details of the tax already paid on your 2023/24 tax return?

What exactly was the nature and amount of amendment you submitted?