HMRC self assessment check - girlfriend is in pieces

[affiliateaudits]

I hope someone can help. My girlfriend has been self employed for about ten years. She doesnt earn a lot - her maximum ever profit was £8,000 and for the past two years she has made a profit of around £3000 with sales of around £6000. She receives housing benefit and couincil tax benefit and working tax credit. She barely has enough money to live on, and is deeply in debt.

 

In Feb 2012 she got a tax credit compliance check asking for details of her income, bank statements, a diary of work, receipts and expenses examples and much more. It took her a lot of time to get the stuff together but in March 2012 she received a letter saying the compliance check was closed and everything was in order.

 

In April, less than one month later she receives another "random" compliance check from the self assessment inspector for the same period. The opening letter asked for details of her personal bank accounts including any in her childrens name as well as a host of other information. Her income had already been verified by the first inspector but now the HMRC wants to put her through the further stress of another totally invasive investigation - even though her gross profit for the year was less than £6,000 so there is no tax likely to be recoverable anyway. The reason given was that they wanted to ensure there was sufficient household income to live on - they pay her working tax credit and have already verified the other benefits she receives. She is feeling totally persecuted and I am at a loss to explain the purpose of this entire check as no tax will be recovered anyhow.

 

My greatest concern is that my girlfriend is seriously ill at the moment, with severe depression and anxiety. She has already made one attempt at suicide, has a significant history of self harm and also has an arrythymia which is exercerbated by stress. Since this latest check arrived she has literally been unable to function, she has cried almost none stop until I managed to get her to contact the Samaritans. I spoke to the inspector involved and he said he may be able to get all the information from the tax credits people as they have copies of her bank accounts - I didnt know they were allowed to keep copies of her personal bank accounts and it raises the issue of privacy. The inspector also said he had no knowledge she had already undergone one compliance check as everything is kept separate.

 

I am sorry this is so long - I need to get my girl friend some help - possibly even a section order as I am scared of what she may do to herself. Do the HMRC have no idea of the stress and fear they put into people - she has done nothing wrong and is only trying to make a small living for herself instead of an easy life on the dole. Does anyone have any ideas what I should do.

[honeybee13]

Hello and welcome to CAG. What a terrible situation to be in.

 

I'll try to get you some help. Weekends are always quieter here, but please bear with us.

 

My best, HB

[Conniff]

I'm not sure how you respond to a post like this, but as I see it, all the paperwork will still be available from the last inspection, so if the HMRC does request the details asked for, it should be an easy matter to forward it to them.

 

As for the stress, you need to consult her doctor as I can't see this inspection being anything to do with that as you say it is long term so sounds as though it is deeper seated in something else.

[affiliateaudits]

Thank you for your replies. The stress thing is long term as she has had a rough few years and Im so lost as to how best to help. The HMRC thing just seems to be the icing on the cake right now. I was wondering if there was any form of appeal as surely two compliance checks in two months for the same period is a little excessive?

[honeybee13]

Hello again. I've asked someone with experience of HMRC matters to look in when they can. I hope they'll be able to get here soon.

 

HB

[jadeybags]

I wonder if this is to do with HMRC starting to want self employed people to earn minimum wage. I am now in the same position as your partner, in that I am self employed & will likely be earning about the same wage per year, at least for the first year anyway.

All she can do is provide all the info again & let them get on with it. I also claim housing benefit now & tax credits. There is no reason it's not enough to live on. I don't understand that bit. It's exactly the same as someone that's employed for 16 hours a week at a supermarket! And far better than someone on JSA!

[Gbarbm]

Hi

It is difficult for me to comment on the actual reason for the SA compliance check, but I can give you my opinion on why I think your GF may have been chosen for a review;

1) self employed profit below 10k project

2) third party information - from an individual or bank/building society

3) inter departmental information - DWP, tax credits, child benefit, CSA

So at best, your GF could have been chosen as she met the criteria in 1) or at worst

someone malicious could have contacted HMRC and told tales about her and unfortunately HMRC are duty bound to investigate.

Your best bet is to write to the Inspector dealing with the enquiry and give him full details of your GF medical/mental state, maybe you could get her to authorise you to act on her behalf which will take the strain off her

[affiliateaudits]

Thanks again for your input. I have filled in a form which the inspector sent for me to act as her representative in this matter, so hopefully they will be dealing with me from now on. I wasnt aware of the under 10k project and it could well be that which has triggered it. Im just hoping they can bring this matter to an early close.

[Gbarbm]

It's good that you are going to be acting on her behalf.

Just gather together all the information requested and send it in.

If you receive any correspondence or forms from HMRC that you are not sure about, then post up on here and we can advise you.

Kind regards

Gbarbm

[affiliateaudits]

I just wanted to update this and say they closed the case today and everything is OK. The tax inspector who dealt with this was very helpful and sympathetic and it shows that HMRC are not always the firebreathing monsters we think they are.

[Gbarbm]

There you go! Good result, glad it's all sorted

 

Kind regards

 

Gbarbm

[andydd]

Excellent result and good to see a poster updating us, often this doesnt happen and we are left in suspenders

[Gbarbm]

Excellent result and good to see a poster updating us, often this doesnt happen and we are left in suspenders

 

Agree Andy, it is nice to get some feedback from the OP

[sadone]

Again thanks for returning to this thread and telling us what happened. May I ask did they let slip what their problem was with her in the first place? Were they concerned with her low income or was it a completely random thing?

[affiliateaudits]

No unfortunately they did not give any clue as to what may have been wrong in this particular case although they did stress that many checks are indeed random.