Over £1200 demanded from HMRC, £300 from a debt collection agency for a business NEVER started!

[John D]

Hey,

 

This is a little complicated but I will make it short..

 

I did a course through a government business called InvestNI in Northern Ireland, they help people with business advise, writing a business plan etc.

 

I was planning on starting a business here

 

The market was simply too bad to start and wouldn't be profitable after I did more research and went through options with the business advisors - I couldn't afford even the startup because of some things I didn't think about

 

I was advised to go to an accountant to talk about starting this up in general, which I did

 

I was asked some questions about me and the business

 

The accountant registered the business, which I did not ask for at all

 

I got lots of bills from HMRC for starting the business, went to the accountant about it and he said it's no problem because the business never started, just ignore them, they are automated

 

I got more.

 

I went to InvestNI, same advise, ignore because I didn't start and they are just automated

 

I then got a letter from a debt collection agency and now they want to take me for a CCJ - That is only for some of the bills, I got ANOTHER from HMRC asking for another £1200+ separate from the debt collection agency!

 

The whole time I have been on Job Seekers - I did the course with InvestNI through them, they know I haven't started any business - How can I be both running a business and on JSA trying to find a job... HMRC seems to think I am.

 

This is really getting me down, it is over my head so much, I don't even open the door now because I am dreading that it will be a summons, someone from debt collection..I don't know.

 

I don't know who to turn to about this or what to do...

I have NEVER had any debts before, I can't believe I got this from doing a course through the government.

 

I would appreciate any help at all

[renegadeimp]

Top left of this site click library. Send the prove it letter

[John D]

Thanks very much for the reply and the link, a great letter, but unfortunately I don't know if that will help.

 

I did know about a debt owed, but I was told I didn't owe anything because I didn't start a business.

 

I still don't understand how I can be on job seekers and also be charged tax for a non-existent business which never started..

 

The debt collection agency ( drydensfairfax solicitors ) took over the debt.

Now the latest letter from HMRC says it is being sent to a debt collection agency AGAIN.

 

I contacted HMRC by email and was simply told that I am in arrears and owe money..Really..how did that help at all.

I emailed telling them the situation and everything that I have posted here and they just said I have to pay.

[renegadeimp]

Thats the point of the letter. It forces them to put forward documentation to prove that you owe it. atm you are relying on guesswork.

[John D]

Thanks again.

 

There are 2 problems here though, 1 is with the debt collection, the other for HMRC.

 

Should the same letter be sent to both? Plus HMRC are saying they are forwarding the £1200 debt to a collection agency now.

[renegadeimp]

Thats tricky. If HRMC allocate the debt to a DCA, then normally the DCA has the rights of HMRC. Might have to tread carefully here. Can i ask if youve contacted HMRC to explain the situation? If you havent, give them a call or write a letter, but do NOT deal with the call centre reps. You need it escalated to a supervisor or manager. Don't take the reps word when they say "supervisor/manager is in a meeting. We'll ring you back".

[John D]

Can i ask if youve contacted HMRC to explain the situation?

 

I sent an email and told them everything about the situation and what has happened.

The only reply was telling me that I am in arrears and have to pay the bill, no other information or help at all, not even a reply to what I asked, pretty much the same details as I have posted here, not one thing was replied to in the email from them.

 

It took around 1 week to even get that reply..

 

I want to have things in writing, but if it takes 1 week to get an email reply, how long will it take to get a letter reply, and all that time more costs could be building up from both HMRC and the debt collection.

 

£1500 (At a minimum, it is a little more) would be over 5 months of my full income (JSA - 282 / month)

[renegadeimp]

You need to address the email higher up. You probably got one of the call centre drones that simply read off the computer screen in front of them.

 

You need to find out how the debt accrued, as the only info so far is that you we them money for no reason.

[estellyn]

Could this be not tax, but the fines for not completing self assessment tax returns?

[John D]

Could this be not tax, but the fines for not completing self assessment tax returns?

 

It could be..I'm not at home now, is there any way to check?

 

I was told by both the accountant and InvestNI to ignore the letters because the business was never started..but if it has gone to a debt collection and they are talking about CCJ, this obviously isn't just a mistake and something that should be ignored.

 

I really have no idea about how HMRC works, exactly why I went for some advise from the accountant.

[estellyn]

This really isn't my area, I just dealt with a similar case once - but turned that bit over to the debt adviser. I think you're supposed to tell HMRC if your business stops, and as you registered a business, they will believe you have one till you tell them you don't, so will expect the tax returns to be completed.

[renegadeimp]

Hi john. Perhaps it might be wise to give National Debtline a call and see what they say.

[osdset]

Hey,

 

This is a little complicated but I will make it short..

 

I did a course through a government business called InvestNI in Northern Ireland, they help people with business advise, writing a business plan etc.

 

I was planning on starting a business here

 

The market was simply too bad to start and wouldn't be profitable after I did more research and went through options with the business advisors - I couldn't afford even the startup because of some things I didn't think about

 

I was advised to go to an accountant to talk about starting this up in general, which I did

 

I was asked some questions about me and the business

 

The accountant registered the business, which I did not ask for at all

 

I got lots of bills from HMRC for starting the business, went to the accountant about it and he said it's no problem because the business never started, just ignore them, they are automated

 

I got more.

 

I went to InvestNI, same advise, ignore because I didn't start and they are just automated

 

I then got a letter from a debt collection agency and now they want to take me for a CCJ - That is only for some of the bills, I got ANOTHER from HMRC asking for another £1200+ separate from the debt collection agency!

 

The whole time I have been on Job Seekers - I did the course with InvestNI through them, they know I haven't started any business - How can I be both running a business and on JSA trying to find a job... HMRC seems to think I am.

 

This is really getting me down, it is over my head so much, I don't even open the door now because I am dreading that it will be a summons, someone from debt collection..I don't know.

 

I don't know who to turn to about this or what to do...

I have NEVER had any debts before, I can't believe I got this from doing a course through the government.

 

I would appreciate any help at all

 

With companies house? So he created a limited company in your name without access to your passport (a requirement now under money laundering rules), no bank account details, no registered address? I find that hard to believe TBH.

Are you sure this person was an accountant?

Edited February 26, 2013 by osdset

[estellyn]

With companies house? So he created a limited company in your name without access to your passport (a requirement now under money laundering rules), no bank account details, no registered address? I find that hard to believe TBH.

Are you sure this person was an accountant?

 

You can register simply as self employed with HMRC - this maybe what has been done.

[slick132]

Hi John D,

 

HMRC Demand

 

Don't use a Prove It letter to HMRC.

 

You need to send HMRC a letter (by Royal Mail, Signed For) asking them to explain exactly what the demand is for, ie what type of tax and for what year(s). Use the reference number on the demands to help them identify your case.

 

You should add that a business was registered in error by an agent but you never set it up, never traded and never received any income.

 

 

DCA Demand

 

Use the Prove it letter in response as already suggested. If the DCA was in touch about an HMRC matter, any demands would clearly identify the matter as relating to HMRC.

 

Does the demand give you no clue as to who is the Creditor they represent.