Income Tax Problems

skellis · 2 April 2007 at 3:10PM

I have only just registered, the reason for this is that my wife and I went bankrupt in 2005 after years of trying to keep our heads above water, but eventually we were forced to declare ourselves bankrupt.

We were discharged at the beginning of 2006 and thought that our problems were over...until today!

I am self employed and have been for 21 yrs, my wife is PAYE, her tax code was changed to Nil after the Trustee's notified all concerned.
She received a letter from the Inland Revenue stating the above, and no other contact has been made.
She telephoned the Inland Revenue today as she was concerned that her tax code was still at nil, only to find out that due to an Inland Revenue error they had forgotten to change her code back, they are now demanding a years worth of tax back, which will put us back into financial trouble once again.

Can anyone out there please help with any advice, is there anything we can do ?

Richard_S · 2 April 2007 at 3:18PM

skellis wrote: »

I have only just registered, the reason for this is that my wife and I went bankrupt in 2005 after years of trying to keep our heads above water, but eventually we were forced to declare ourselves bankrupt.

We were discharged at the beginning of 2006 and thought that our problems were over...until today!

I am self employed and have been for 21 yrs, my wife is PAYE, her tax code was changed to Nil after the Trustee's notified all concerned.
She received a letter from the Inland Revenue stating the above, and no other contact has been made.
She telephoned the Inland Revenue today as she was concerned that her tax code was still at nil, only to find out that due to an Inland Revenue error they had forgotten to change her code back, they are now demanding a years worth of tax back, which will put us back into financial trouble once again.

Can anyone out there please help with any advice, is there anything we can do ?

Hi skellis,

The Inland Revenue are reasonably flexible, if you explain the situation and how it arose they may well be prepared to accept monthly payments either by adjusting your O.H's tax code or making an agreed monthly payment. If you find that you can't make any headway with the person you're speaking to ask to speak to a manager or make an appointment to see somebody in person. How much are they claiming you owe them?

Best regards

Richard

skellis · 2 April 2007 at 3:25PM

Hi Richard

Approx £7,000, apparently someone at the inland revenue forgot to flag the account for any changes.
It was picked up by my wife's employers that tax code had not changed.

Thanks for advice.

skellis

Richard_S · 2 April 2007 at 3:34PM

skellis wrote: »

Hi Richard

Approx £7,000, apparently someone at the inland revenue forgot to flag the account for any changes.
It was picked up by my wife's employers that tax code had not changed.

Thanks for advice.

skellis

Hi skellis,

I wasn't expecting it to be quite that much, but you can't pay money you don't have and it's going to make the Insolvency Service and Inland Revenue look completely incompetent if they get heavy handed with somebody who's got a problem utterly and entirely of their own making.

I'm sure they'll argue that is was your fault and you should have notified them earlier, but I would be amazed if they wouldn't come to some arrangement with you.

Regards

Richard

rog2 · 2 April 2007 at 4:08PM

I would be inclined to put in a FORMAL complaint to HMRC. They made a mistake and are using their muscle to claw back the money, without so much as an apology.
Why should you suffer for the ineptitude of some faceless clerk, who, unless you complain, won't even get a ticking off?
If you think I'm a bit biased, you are probably correct - HMRC made me bankrupt for a disputed Self Asessment figure, yet NEVER gave me any information to back up their figures. :mad: :mad:
Go get 'em.

Richard_S · 2 April 2007 at 4:20PM

rog2 wrote: »

I would be inclined to put in a FORMAL complaint to HMRC. They made a mistake and are using their muscle to claw back the money, without so much as an apology.
Why should you suffer for the ineptitude of some faceless clerk, who, unless you complain, won't even get a ticking off?
If you think I'm a bit biased, you are probably correct - HMRC made me bankrupt for a disputed Self Asessment figure, yet NEVER gave me any information to back up their figures. :mad: :mad:
Go get 'em.

I agree Rog,

The problem is you'll never get the bu***rs to admit they've made a mistake and the chances of winning a legal case against them are almost negligible. The O.P's problem is that he can't afford to offend them until he's reached some agreement to repay the money.

Rich

rog2 · 2 April 2007 at 4:37PM

Richard_S wrote: »

I agree Rog,

The problem is you'll never get the bu***rs to admit they've made a mistake and the chances of winning a legal case against them are almost negligible. The O.P's problem is that he can't afford to offend them until he's reached some agreement to repay the money.

Rich

HMRC have a charter which states that all complaints will be fully investigated and that they must treat clients in a correct manner.
Registering a complaint should not affect the Op's situation in any way.
When have HMRC ever worried about offending the public?

skellis · 2 April 2007 at 4:38PM

We are in the middle of complaining to Inland Revenue for their mistake, and trying to get them to put in writing that it was their fault, I'm not holding my breath. After so many lies and underhand tactics employed by banks, credit card companies and insurance organisations before and after we went bankrupt, I am now fully aware that no one holds their hands up to mistakes, but I am going to try, there may be some decent people out there !

rog2 · 2 April 2007 at 4:41PM

skellis wrote: »

We are in the middle of complaining to Inland Revenue for their mistake, and trying to get them to put in writing that it was their fault, I'm not holding my breath. After so many lies and underhand tactics employed by banks, credit card companies and insurance organisations before and after we went bankrupt, I am now fully aware that no one holds their hands up to mistakes, but I am going to try, there may be some decent people out there !

Well done Skellis - why should you have to put up with their ineptitude?
I wish you well. :beer:

Richard_S · 2 April 2007 at 4:53PM

rog2 wrote: »

HMRC have a charter which states that all complaints will be fully investigated and that they must treat clients in a correct manner.
Registering a complaint should not affect the Op's situation in any way.
When have HMRC ever worried about offending the public?

Rog,

I completely agree and if I was in the O.P's position I'd want my pound of flesh, but somebody somewhere has made a mistake and won't appreciate being taken to task about it. Get an agreement first and then go for the jugular. I used to play cricket against an HMRC team and you wouldn't believe how "back biting" and "snidey" they are.

Rich

rog2 · 2 April 2007 at 5:07PM

Richard_S wrote: »

I used to play cricket against an HMRC team and you wouldn't believe how "back biting" and "snidey" they are.

I do know Rich - I think the words 'smug' and 'arrogant' also spring to my mind. I obviously upset someone there bigtime, but they really should not be allowed to ride 'roughshod' over the public and the charter is, after all, designed to protect the public against possible 'bigoted' attitudes of individuals who are being paid, by the public, to administer a 'system' fairly and without personal bias.
I think the OP is right to complan and he should keep a record of all conversations, including names, just in case he is subjected to the 'snidiness' and 'backbiting' that you have described.

Income Tax Problems

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free