HMRC charging me debt

[dreamseller]

I recently received a threatening letter from HMRC saying that I have a self assessment debt of around £500. Apprently they're going to "send it to a debt collection agency" unless I pay in full now. It also says I'm being "charged interest daily." This is the first I've heard of this debt, so perhaps it's a con letter?

 

I've tried to look into what the debt is for, but the HMRC site is so terribly designed and maintained that it's virtually impossible. No where in the letter or website am I told what this debt is actually for.

 

What are my best steps?

[honeybee13]

Hello there.

 

Do you have a department name or an address on the letter please? Hopefully the guys will be along later with advice for you.

 

HB

[dreamseller]

Hi,

 

Thanks for the reply.

 

It says:

 

Debt Management & Banking

 

1st Floor

Dorset House

27-45 Stamford Street

London

SE1 9PY

Edited February 24, 2014 by honeybee13
Staff member name.

[Ros1609]

You could write and ask for a breakdown of the debt and what its for

[blondebubbles]

The cons are usually to do with getting a tax rebate rather than you owing them. That is also a genuine HMRC office so unlikely to be a con.

 

I would contact the SA helpline first to establish what the reason is.

 

From there you can then consider what to do.

[dreamseller]

I've ascertained that the debt is over a late filing penalty from 2012. Apparently, I've been charged at 0.02p per day for several years. Around £350 in fees, bringing it to a total of nearly £500 (including the original £100 late filing fee).

 

So how would I go about getting them to drop these charges? I'm unaware of this until today. The website is terrible and I've even filed self assessment returns since the late one and not been told! I'm also not even self employed anymore.

[blondebubbles]

So did you actually submit it late? If so I would imagine you could only appeal the interest etc on the basis that you didn't know unless you have a reasonable excuse for not completing on time.

 

Have they said if they've wrote to you before now? If they have wrote to you before they can usually provide copies which might not help any appeals you make.

 

Here is their guidance on appeals - http://www.hmrc.gov.uk/sa/appeals-decisions.htm

[dreamseller]

Hi,

 

Thanks for your reply.

 

I've not received any prior correspondence from them about this late penalty fee. This is the first I've heard about it, which is why it came as such a shock today.

 

I intend to write to them and get the late penalty fees removed from my account. All of my tax is in order, etc, they just seem to be chasing me for these late penalties.

 

I just found this: http://www.rpc.co.uk/index.php?option=com_easyblog&view=entry&id=722&Itemid=129

 

As per the above, apparently there was a recent decision by the FTT that found in favour of the claimants vs. HMRC's late penalty daily fees.

[blondebubbles]

My point was whether they have sent it rather than have you received it.

 

If they have sent it then it is not their error if it was not received. I've seen this used as an argument before in their cases, that's why I'm mentioning it.

 

If you submitted it late then you would need to pay the penalty for that. What you should then appeal is the daily penalties (the same as those cases in the link).

[dreamseller]

My point was whether they have sent it rather than have you received it.

 

If they have sent it then it is not their error if it was not received. I've seen this used as an argument before in their cases, that's why I'm mentioning it.

 

If you submitted it late then you would need to pay the penalty for that. What you should then appeal is the daily penalties (the same as those cases in the link).

 

I've been reading about lots of cases of errors with HMRC. Upon receiving this letter, I've done a lot of research into their bumbling ways.

 

So what is the correct way to appeal these daily penalties?

 

I should also mention that I'm not even self employed anymore and have been paying tax and national insurance at source with my employer.

[blondebubbles]

I've been reading about lots of cases of errors with HMRC. Upon receiving this letter, I've done a lot of research into their bumbling ways.

 

So what is the correct way to appeal these daily penalties?

 

I should also mention that I'm not even self employed anymore and have been paying tax and national insurance at source with my employer.

 

They do make errors yes. But so do taxpayers. No one is perfect. What is important is what (if any) errors where made in your case.

 

Yes I saw you mentioned that before about no longer being self employed. This wouldn't be relevant to your appeal unless in the year in question you weren't self employed therefore not required to submit the return.

 

If you have a look at that link I posted it explains how to appeal. You'd be looking to complete an SA370.

 

There is space on the form to explain why you submitted late (you haven't said if you actually did or if they just believe you did) and why you do not feel you should have to repay.