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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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Hi, I have been having an overly frustrating issue with HMRC

Resolved Question:

Hi, I have been having an overly frustrating issue with HMRC for 1.5 years. They keep sending me letters stating that I underpaid tax, which is incorrect, and in fact my tax have been overpaid and they owe me money. Each time I telephone them they acknowledge the mistake and promise to correct the system and recalculate the result. Only to send me another letter a few months later stating the wrong amount again. I have received 6 such letters in total, and am infuriated. Dealing with them on the phone at my spare have cost me time and money. I would like to seek compensation. Can you help?
Submitted: 2 years ago.
Category: Law
Expert:  Ash replied 2 years ago.
Alex Watts :

Hello my name is ***** ***** I will help you with this.

Alex Watts :

How much in compensation are you seeking to recover please?

Customer:

Hello Alex. Good question about the amount of compensation. I am not sure. The money in question, that is the underpaid tax amount HMRC have been claiming is 2,600 GBP. Now, this is wrong, and my correct tax situation is that I have overpaid £722. Now, I am self-employed highly skilled engineer of a principal level providing services to global engineering companies mainly in oil & gas sector. My current hourly rate is 70 GBP and I have paid more than £100K in taxes to HMRC in the last five 5 years. Having them constantly at my tail by sending nonsense accusations and threatening to revise my tax code so as to deduct the underpaid amount has been making me insane and has not I live an extremely busy and stressful life

Alex Watts :

You need to write and set out your losses and request a payment within 14 days or say you will go to Court within 14 days. You should make sure you send this signed delivery and keep a copy.

Alex Watts :

If they do not pay you then you can issue proceedings in the County Court. You can either do this online at: www.moneyclaim.gov.uk or by completing form N1 http://hmctsformfinder.justice.gov.uk/courtfinder/forms/n001-eng.pdf and take it to your local County Court.

Alex Watts :

The Court will then issue a claim which a copy will be sent to the Defendant who will have a limited time to defend it, if not you can enter Judgment and enforce.

Alex Watts :

If the matter is defended it will be set down for a trial. If the claim is for £10,000 or less it will be a small claim and you will not need representation.

Alex Watts :

Can I clarify anything for you about this today please?

Customer:

OK, finishing here. I have made 5 phone calls to HMRC directly in the last 1.5 years, and spent about 15 years on the phone in total trying to resolve this issue with them. This therefore cost about a £1,000 of my precious time. I spent about 10 hours sending letters to and talking on the phone to my tax advisor, this is another 700 GBP. Thus, the total direct loss is 2,600+1000+700=4,300 GBP. However what is about the moral damage. How much will you rate the loss of my nervious cells given the stressful and busy life I am living and given my family circumstances (husband is undergoing cancer treatment). 5,000 GBP ? 10,000 GBP ? I need your advice.

Alex Watts :

Time spent is £9.50 per hour. Stress depending on how long but it wouldn't be more then £500 or so unless you have been formally diagnosed by your GP with stress and had a formal assessment

Customer:

Ok. Alex, thanksa sounds like the way forward. Can I just clarify who do I need to write this letter to in the first instance? HMCR address overleaf the tax underpayment letters they keep sending me ?

Alex Watts :

Yes you need to write a letter and make sure you send it recorded delivery

Customer:

OK, that's all for now. Thanks !

Alex Watts :

Great. Can I clarify anything else for you?

Customer:

No. Thanks!

Alex Watts :

Great. If I could ask you to rate my answer before you go today - the button should be at the bottom of the screen

Alex Watts :

If you need more help please click reply

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