HMRC THREATENING

saajan_12

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. 

It they made the mistake and all your fields were filled in correctly, what could you possibly amend? 
Any chance they don't agree on who made teh mistake? 

sheramber

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. 

That submission may not have been checked at the time.

HMRC operate a process now, check later system. 

The check may have been done  when your SA return was submitted. 

Can you tell us what was the amendment you made to the return? 

mybestattempt

I have just checked the CG pages of the 2023/24 return (SA108) and my guess is:

•In August 2023 @michug reported a taxable gain of £xxxx  (the total gain less PRR of £91412) 

•When he completed the SA108 he returned the taxable gain as £xxxx + £91412 (and the previously reported taxable gain as £xxxx)

•When he received the calculation he contacted HMRC and was told he needed to amend the return to a taxable gain of £xxxx (to match  the previously reported gain and give effect to the PRR of £91412)

If I'm correct it would appear that HMRC didn't make a mistake.

As I say, just my guess.
                 

Dazed_and_C0nfused

mybestattempt said:

I have just checked the CG pages of the 2023/24 return (SA108) and my guess is:

•In August 2023 @michug reported a taxable gain of £xxxx  (the total gain less PRR of £91412) 

•When he completed the SA108 he returned the taxable gain as £xxxx + £91412 (and the previously reported taxable gain as £xxxx)

•When he received the calculation he contacted HMRC and was told he needed to amend the return to a taxable gain of £xxxx (to match  the previously reported gain and give effect to the PRR of £91412)

If I'm correct it would appear that HMRC didn't make a mistake.

As I say, just my guess.
                 

Based on the garbled explanation from the op it could well be an accurate one though.