HMRC (alleged) debt - please advise

[ChargeBlaster]

Last year, HMRC (quite rightly) sent demands to me stating that I needed to complete tax returns going back to 2008/9 and 2009/10.

 

These were completed (by my accountant). One of these years showed a loss of c£20,000. The returns were submitted to HMRC, along with other more recent tax returns.

 

HMRC then notified me that these specific returns for the years mentioned above, are 'time barred', and cannot be used to calculate tax owing. They consequently hit me with a £26,000 tax bill.

 

All the advice I read at the time, and HMRC's own advice by telephone, suggested that I should make a payment arrangement first, argue the toss second - which is what I did. I subsequently set up a payment arrangement of £500 per month, which I could afford at the time.

 

I subsequently sent to HMRC a SAR, to include transcripts of all telephone conversations, in order that I could determine what they'd told me - with a view to compelling them to take into account the loss on my accounts of £20,000. On 11 May, I received an email from them to confirm receipt of the SAR, pointing out that they had 40 days with which to comply with the SAR.

 

Needless to say, 40 days expired on 20 June 2015, and nothing has been heard from HMRC. So I can't challenge the debt as I evidence upon which I might rely is being withheld.

 

My financial circumstances have now changed to the extent that I can no longer afford £500 per month - on a debt that I can't challenge.

 

SOOOOOO.....What options do I have?

 

1. How can I hold HMRC responsible for not complying with their legal requirement under the DP ACT to respond to the SAR within 40 days?

 

2. Can / should I stop the repayment based on 1. above?

 

3. Regardless of 1 and 2 above, I can no longer afford £500pm.....

 

Any advice and guidance would be much appreciated.

[Mr.P]

1. How can I hold HMRC responsible for not complying with their legal requirement under the DP ACT to respond to the SAR within 40 days?

 

Write to HMRC and point out they are in breach of their statuary obligations under the DPA.

 

Make a formal complaint to the ICO and get them to put pressure on HMRC.

[BazzaS]

Last year, HMRC (quite rightly) sent demands to me stating that I needed to complete tax returns going back to 2008/9 and 2009/10.

 

These were completed (by my accountant). One of these years showed a loss of c£20,000. The returns were submitted to HMRC, along with other more recent tax returns.

 

HMRC then notified me that these specific returns for the years mentioned above, are 'time barred', and cannot be used to calculate tax owing. They consequently hit me with a £26,000 tax bill.

 

All the advice I read at the time, and HMRC's own advice by telephone, suggested that I should make a payment arrangement first, argue the toss second - which is what I did. I subsequently set up a payment arrangement of £500 per month, which I could afford at the time.

 

I subsequently sent to HMRC a SAR, to include transcripts of all telephone conversations, in order that I could determine what they'd told me - with a view to compelling them to take into account the loss on my accounts of £20,000. On 11 May, I received an email from them to confirm receipt of the SAR, pointing out that they had 40 days with which to comply with the SAR.

 

Needless to say, 40 days expired on 20 June 2015, and nothing has been heard from HMRC. So I can't challenge the debt as I evidence upon which I might rely is being withheld.

 

My financial circumstances have now changed to the extent that I can no longer afford £500 per month - on a debt that I can't challenge.

 

SOOOOOO.....What options do I have?

 

1. How can I hold HMRC responsible for not complying with their legal requirement under the DP ACT to respond to the SAR within 40 days?

 

2. Can / should I stop the repayment based on 1. above?

 

3. Regardless of 1 and 2 above, I can no longer afford £500pm.....

 

Any advice and guidance would be much appreciated.

 

Just to clarify :

"HMRC then notified me that these specific returns for the years mentioned above, are 'time barred', and cannot be used to calculate tax owing. They consequently hit me with a £26,000 tax bill."

 

Is the £26k bill based on a "determination", and if so when was that determination first made?

 

Do HMRC state (or does your accountant believe) that you were previously asked to submit returns?

Had you had any "late filing penalties" that would mean you would have been aware a return was overdue?

(These would influence when the "filing date" for these returns should have been)

 

IF this does relate to determinations, I've previously posted about determinations, when they become "fixed", appeals, and "Special Relief" in my post of 31st January 2015 to the thread http://www.consumeractiongroup.co.uk/forum/showthread.php?440393-HMRC-harassment&p=4683974#post4683974

 

Did your accountant comment last year on the 26k bill, and if it could be appealed?

When last year was it, was it over a year ago (as you can't appeal a determination later than a year after it was made, if it was made more than 2 years after the filing date of the return)

[ChargeBlaster]

Hi Bazza

 

Thank you for your prompt response. I will look into the paperwork, and try to get the answers to your questions.

 

Am I looking for the word "determination" in the correspondence from HMRC, given the importance you appear to be attaching to the word?

 

BTW, I can't get the link in your post to work....

[BazzaS]

Hi Bazza

 

Thank you for your prompt response. I will look into the paperwork, and try to get the answers to your questions.

 

Am I looking for the word "determination" in the correspondence from HMRC, given the importance you appear to be attaching to the word?

 

BTW, I can't get the link in your post to work....

 

They were described as "determinations" by HMRC when I helped my friend some years back.

 

Trying that link again :

http://www.consumeractiongroup.co.uk/forum/showthread.php?440393-HMRC-harassment&p=4683974#post4683974

 

Don't forget CAG sometimes adds spaces to URL's, so it may be worth Copying & Pasting it, deleting any spaces and then trying it?

Or, hitting "reply" and copying it from that text, where it may show without added spaces?

 

 

From that thread, that OP noted that HMRC's statement included (for example) "05/04/08 SA Determination, Tax £600, Interest to 20/01/15 £106.31", so in 2008 they were still referring to them as determinations, and using that term in statements sent Jan 2015.