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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15915
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I was self employed many years ago years. I filled out

Customer Question

I was self employed many years ago for 2 years. I filled out my last tax return and moved home. At the time of moving home I was no longer self employed but was employed and taxed by PAYE. I did not know I needed to inform the tax office of my change of address. The tax office say they did not receive my return and because I'd moved house I was unaware of this. 6 years later I receive a tax bill for 13k. I do not owe this money! After numerous phone calls and letters they have brought this down to 7k but again I still don't owe this money. What can I do?
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
Hi. How many years ago were you self-employed? What was the nature of the business? Do you remember how much tax you think you owed on your last tax return? Was the tax return completed on paper? If you did owe any tax, did you not wonder why you received no tax demands? Do you have any business records at all? What made HMRC reduce their estimate of your liability from £13,000 to £7,000?
Customer: replied 1 year ago.
I was self employed from August 2004 to march 2006. I was also at college and only earned approx 4-5k pa. In march 2006 I ceased self employed and have been employed by various employers since then. I am due no tax from self employed years as did not earn enough. The problem started when 6 years later they asked me to fill out tax returns for the previous years as they stated I had not informed them I was no longer self employed. I filled these out to the best of my ability as had no paperwork. They were all filled out showing my employers details and approximate annual salaries. I did not know how much tax or ni I had paid so was advised my a hmrc adviser to put on the back of the return a commental to explain this. Which I did. From this they presumed I had paid no tax at all!! I then requested a breakdown from PAYE what I had paid in tax which I sent self assessment people. This has brought the bill down somewhat but for some reason they are still charging me for 2009 and 2010....when I was employed and have paid all my tax on full through my employer. A total of 7085.44.
Expert:  TonyTax replied 1 year ago.
Thanks.
So, are you saying that you have been given no credit for PAYE tax deducted for 2009/10 but that the other tax years have been cleared up? Do you remember who were working for in 2009/10?
Customer: replied 1 year ago.
Yes that is correct. Yes I have the letter from PAYE stating what tax I've paid and that shows my employers. I have sent this letter to the self assessment department. No one seems to listen or know what they are doing. I've received a letter from a debt collection agency this morning.
Expert:  TonyTax replied 1 year ago.
Thanks.
Leave this with me while I draft my answer.
Expert:  TonyTax replied 1 year ago.
Hi again.
I have to say this is an odd situation.
Whilst your tax return should show the PAYE tax deduction from your pay, HMRC are advised by employers of PAYE tax deduction for each of their employees and I would expect HMRC to amend your tax return automatically as it wouldn't tally with the information they received from a third party.
The commercial debt collection agent cannot visit you for tax you appear to owe as they might for other types of debt. My understanding is that any contact will all be done by correspondence or phone. Given the urgenyc of the situation, this is what you should do.
Call the tax office on the number at the link below (today if possible) and tell them that you want to make a verbal complaint. Don't let the person who answers the phone deflect you, though you might give them one final chance to sort the problems out. If they cannot do that, ask to speak to the complaints manager. If one isn't available, ask for a call back. Don't wait more than 24 hours for call back. Keep calling until you get to speak to one.
Explain your situation to the complaints manager and emphasise that you get the impression that nobody is listening to you or appears to care or know what they are doing and that you cannot understand that whilst your tax return for 2009/10 or whichever tax years are the problem (you typed 2009 and 2010) was incorrect in that it did not show the PAYE tax deducted from your salary, the other tax years which had the same problem have been cleared up.
You should tell the complaints manager that you have had a letter from an external debt collection agency so it is imperative that someone get a handle on your case as soon as possible because you don't believe you owe any tax.
The complaints managers are usually pretty good at bashing heads together and sorting problems out so be polite, explain yourself fully even though you will feel stressed and annoyed. Hopefully, the complaints manager will investigate the matter quickly and call you back to tell you what he or she has discovered. You should ask how long it will take given that you have had a letter from the debt collector.
The tax office number you should call is here:
https://www.gov.uk/government/organisations/hm-revenue-customs/contact/self-assessment
The complaints procedure notes are here:
https://www.gov.uk/guidance/complain-to-hm-revenue-and-customs
and here:
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/408997/C_FS_02_15.pdf
I hope this helps but let me know if you have any further questions.
TonyTax and other Tax Specialists are ready to help you
Customer: replied 1 year ago.
Thanks for your assistance.
Expert:  TonyTax replied 1 year ago.
Thanks and good luck.

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