Have HMRC broken any rules here?

sashysach

Im really hoping someone can help me out with this one, not even sure if there is anything that can be done, but it really feels like there SHOULD be! Quite a few of these details are sketchy - this is deliberate, but I think the pertinent details are here.

Anyway, the background: I owe around £7k in backtax. I hold my hands up and say this is my bad, I should have paid it and havent in time, so please dont tell me its of my own making, this I already know

So, around 3 weeks ago a HMRC officer knocks on the door and levies distraint on my car, a 2002 model with an open market value of circa £2000. I couldnt pay in time, so the car was taken by the auction house and duly sold.....for £700. I shouldnt be surprised, that is roughly the amount I had in my head it would get at auction.

Now comes the kick in the nuts though. It sold for £700, take off recovery costs, storage costs, advertising costs, sales commission, distraint charge and assorted extra fees which the money grabbing auctioneers and HMRC stuck in, and guess what? I owe MORE money now than before they took the damn car.

Now I know the revenue have to have a method of recovering unpaid taxes, and a big part of the distraint process is to act as a deterrent, but surely this is just pure stupidity? They have taken one of the main items I need for getting TO and FROM work - I now have to pay for a bus (which costs more than petrol), cant do overtime and spend longer travelling meaning I cant do a second job - all things which stop me paying them back as quickly as possible. I wouldnt be as wound up if it had at least knocked off some of the amount I owe them, but the way I see it, the only people who have benefitted are the auction house as HMRC still have the full (and more) outstanding debt.

Stupid thing is if they hadnt levied distraint but had sent me the letter before distraint (which I never received btw) I would have put the car up for sale at £1500 and I could pretty much guarantee a sale inside 48 hours - they could have had all of that off the bill (save for £200 which would have paid for a wreck to get me to and from work), instead of which once they levied distraint I was just up the creek without a paddle as it technically becomes their property and it is a criminal offence to sell it after that point.

So my question - am I just screwed, carless and owing more money than I did to begin with, or do I have any recourse - either with HMRC, the auction house or both?

chappers

I believe thhey may have acted illegaly here there is something in the HMRC manual that says they can destrain goods below the value of the debt, but only if the procedes will cover the costs and a reasonable proportion of the debt.
Will have a dig around for you.

chappers

Have found it for you

http://www.hmrc.gov.uk/manuals/recmanual/REC2421.htm

sashysach

Thanks you are a star - now what do i do then - obviously my best car I have ever owned has gone and will never be mine again , but I would like some kind of redress in this matter, but have no idea how to go about it......is it time for YET ANOTHER waddle down to CAB?

chappers

I think so or maybe give a soliciotor a quick ring, I think you may need someone with a bit more clout on this one.
The one thing against you is the still outstanding debt, however their own officers acted outside their own guidelines.
I am sorry I have no further information as to how you get redress, maybe ring HMRC and find out how you go about making a complaint aginst unfair action.
As far as I see it their action has put you in more hardship and you should have legitimate claim. if you read some of the other guidelines previous it even instructs their officers to be aware that goods seized may not obtain their full market value at auction.
Would be interested to know what the text deleted under the freedom of information act says in case it is some getout clause.

BoGoF

I'm not to convinced you have a case here - yes at the end of the day the sale proceeds did not cover the costs but would this be known at the time of distraint ? Was it realistic for the officer to expect it would only get £700, I would have certainly though a 2002 reg car would go for a lot more.