Tax & HMRC

[Kopic]

I'm hoping foxestalk has some tax experts or perhaps even someone who works for HMRC.

 

Basically in January 2021 my missus got a simple assessment letter saying she owed 1200. We knew it was wrong and looked into it. Basically in the 19-20 tax year she had a job from January to August 2021. On the simple assessment it said she was paid entirely in the 19-20 tax year, which she obviously wasn't. We tried to call and get in touch with no luck. We ended up leaving it because we knew it was wrong. A couple months later, another letter appeared. This time saying we have recalculated and you don't owe anything for the 19-20 tax year.

 

Now here's the issue. She continues to get letters, including today, demanding the original 1200 they said she owed for the 19-20 tax year. So it seems to me although they recalculated they didn't cancel the demand they set up. Again spent many an hour on hold trying to talk to them, can never get through. Tried twitter, they just said to call. 

 

Can anyone think what our next step should be? What do HMRC normally do with unpaid simple assessments? As she doesn't owe it we are obviously not going to pay, but if we can't contact them, just "ignore" them, what do they do? Send the bailiffs round? Take her to court? 

 

We have even tried sending a letter last year and they didn't respond to that. 

 

Although she doesn't owe it it causes her a lot of worry. I know this is quite niche and I'm fully prepared for this thread to drop into obscurity but any advice would be greatly appreciated.

 

Cheers!

[Houdini Logic]

Have you tried calling HMRC? I've found them surprisingly helpful when I've had to call in the past

[Bellend Sebastian]

I know it's hard to get through but your best bet is to always speak to an actual person. You may have to hold forever, but once you've got someone I believe they're pretty good at keeping the call going until the issue is sorted

[Riyad_Suarez]

Ring around 8amish if you can, you'll get through much quicker. 

[MonkeyTennis?]

Not a tax expert at all, sorry, but over the last couple of months I have been caught up in having to repay child benefit payments we had been getting, so ended up with a whopping bill - so this is all a recent, very bitter experience

 

Firstly, I called a couple of firms who sold themselves as 'Tax advisors' but they were generally accountants who only really filed tax returns for others, and couldn't actually help. Several times I tried calling HMRC but you wait for ages and no-one answers. In the end though, I just stuck it out as everyone here is suggesting - I did eventually get through and they were pretty helpful. It may be that doing this will make it all go away. 

 

You have probably already done all this, but I would also say, before you call anyone, to make sure your wife is registered with HMRC online, and that you look at the 'HMRC Services', then the 'Self Assessment' areas. That will tell you if they really do think you still owe them money. 

 

I found that the amount you owe goes up every few days with interest. They will try to charge you a penalty for late payment which you will have 30 days to appeal. I only got charged the penalty once I paid the amount they wanted, and I had 30 days to appeal it. (I would guess they would ask you for £150-200 in your case.)

 

Otherwise, if they really are expecting money from you and you can't get through on the phone you would need to write to them and tell them they have it wrong, I guess with evidence. 

 

 

[Kopic]

3 minutes ago, MonkeyTennis? said:

 You have probably already done all this, but I would also say, before you call anyone, to make sure your wife is registered with HMRC online, and that you look at the 'HMRC Services', then the 'Self Assessment' areas. That will tell you if they really do think you still owe them money. 

 

I found that the amount you owe goes up every few days with interest. They will try to charge you a penalty for late payment which you will have 30 days to appeal. I only got charged the penalty once I paid the amount they wanted, and I had 30 days to appeal it. (I would guess they would ask you for £150-200 in your case.)

 

Otherwise, if they really are expecting money from you and you can't get through on the phone you would need to write to them and tell them they have it wrong, I guess with evidence. 

 

 

I guess we'll just have to keep calling. Have tried all times of the day from open to close just to never get through. In fact, once we did, and the call ended immediately.

 

One the two points above. She does have the online account, and when she first got the letter, it did say she owed it. But then after the letter saying they recalculated, it said she didn't owe anything. Its all very confusing.

 

The other point, so far she hasn't been charged any interest or fees. The letters state 0.00 under interest on every payment letter. Its all very strange.

 

Thanks for the advice everyone, appreciate it!

[Babylon]

23 minutes ago, Kopic said:

I guess we'll just have to keep calling. Have tried all times of the day from open to close just to never get through. In fact, once we did, and the call ended immediately.

 

One the two points above. She does have the online account, and when she first got the letter, it did say she owed it. But then after the letter saying they recalculated, it said she didn't owe anything. Its all very confusing.

 

The other point, so far she hasn't been charged any interest or fees. The letters state 0.00 under interest on every payment letter. Its all very strange.

 

Thanks for the advice everyone, appreciate it!

 

Send a letter recorded post, with a letter explaining what happened and containing photo copies of the original demand and the climb down. Track the letter and make a note of who signed for it and when. 

 

If anyone comes chasing, you can point them towards all your evidence. Might take them months to look at it, but you're covering yourself if you really don't want to sit on the phone for hours. 

[The Syrup]

HMRC online is useful. I had a tax bill a couple of years ago after my employer messed up my tax code, and paid it online without issue. Pretty sure you can contact them via this service too.. It tells you if you have paid the correct amount of tax for each financial year as well, plus your NI payments details. You just need a government gateway login through gov.uk . Easy enough to get your government gateway account up and running.

[philce]

Had the same thing with child benefit and my company car at the time pushing me over the threshold for child benefit.

Got demands for £800, that was already 2 years late!

 

I'm on self assessment so that is actually a separate account with HMRC, one said I had paid off the underpayment, and the other said I hadn't!

 

Every time I called they were super helpful and confirmed that the outstanding was cleared, and they would send a message to the other department confirming I had done so.

 

I still got letters and demands, I ended up sending a recorded delivery letter to them, explained the situation and how annoyed I was etc etc, got a letter back confirming I was right and the accounts were settled.

 

Check if there is a separate "self assessment" account, and if this is showing an underpayment on your online HMRC tax account.

 

Don't just leave it either, the government is skint, they wont leave it!

 

Good Luck!

[The Year Of The Fox]

Just stay on hold with that dreadful music. I’ve been on hold for up to an hour before, but they will answer. Eventually 

[yorkie1999]

I had to pay a load for child benefit a few years back, something i'd never asked for in the first place, but what i couldn't work out, why do you have to do a self-assesment if you're paye? doesn't make sense, you pay tax as you earn it so they know what you're earning and what benefits you get, you may as well be self employed and get away with paying 2% NI.

[HighPeakFox]

1 hour ago, yorkie1999 said:

I had to pay a load for child benefit a few years back, something i'd never asked for in the first place, but what i couldn't work out, why do you have to do a self-assesment if you're paye? doesn't make sense, you pay tax as you earn it so they know what you're earning and what benefits you get, you may as well be self employed and get away with paying 2% NI.

I'm self employed, and I don't pay 2% in NI. I don't know what you're referring to here. 

 

If I've misunderstood you, I apologise. 

Edited 26 May 2022 by HighPeakFox
Caveat

[Tommy G]

I'm an accountant but now work in industry, I have a friend who has his own practice in Leicester who deals with all my families affairs and he's the best, and not too ££ either. PM if you or anyone want his details.