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bigduckontax
bigduckontax, Accountant
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I have had my bank account frozen in spain by the inland

Resolved Question:

I have had my bank account frozen in spain by the inland revenue debt management people for self assessment fines. What do I do to resolve this?
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

The Inland Revenue actually ceased to exist some years ago when amalgamated with HM Customs and Excise to become HMRC. If HMRC does decide to take the cash, banks will actually freeze the money for 30 days before it goes to HMRC. So you then have 30 days to object to HMRC about the money being taken. This may be what has happened in the case of your Spanish bank account.

I am unable to detrmine whether HMRC actually have to power to distrain on foreigh bank accounts, but suspect that within the EU this may be the case. HMRC have been under heavy criticism in the financial media for making endless errors through ill trained officials. In one case they froze the account of a person with the same initials, but different first name who was the father of the individual with tax disputes who happened to have come to live with him.

Customer: replied 1 year ago.
I spoke to the Spanish Tax office and they informed me it was the UK tax people froze my account and then discovered they had the incorrect address for me so I never received any notification
Expert:  bigduckontax replied 1 year ago.

Typical; I assume that you will have 30 days to query HMRC from their eventual notification to the correct address.

Customer: replied 1 year ago.
I travel to Scotland on Monday and go offshore Tuesday for two weeks, none of my bills have been paid, how can they do this to me, they have left me with nothing
Expert:  bigduckontax replied 1 year ago.

No, they have merely frozen you bank accounts for non payment of self assessment fines in excess of GBP 1K, not below. They are empowered to do this under the Finance Act, 2015. There are, however, limitations to their powers viz [source: Politics. co.uk]:

'The power can only be used once you've received a couple of letters and a phone call from enforcement. It only applies to people who owe over £1,000. HMRC must leave at least £5,000 in your account.'

Expert:  bigduckontax replied 1 year ago.

Post to clear a lock on my question list.

Customer: replied 1 year ago.
I have not received any letters or pnone calls but they have done it anyway.
Expert:  bigduckontax replied 1 year ago.

Well invoke the formal complaints procedure which you can find here:

https://www.gov.uk/guidance/complain-to-hm-revenue-and-customs

Once again HMRC staff have been exceeding their powers as the sums allegedly owing are below GBP 1000.

Customer: replied 1 year ago.
They say I owe about GBP 5000
Expert:  bigduckontax replied 1 year ago.

And I could say the moon is made of green cheese, but it would not necessarily be correct. Do you owe HMRC 5K? Or are HMRC assuming; HMRC staff are very keen on assumptions, in my experisence invariable wrong and always in favour of the Revenue.

Customer: replied 1 year ago.
I can only go on what they told me, they said I can be fined 4 times a year 1600 which they appear to have done and then mentioned something else about a 6k plus fine. This is all very strange as I am paye
Expert:  bigduckontax replied 1 year ago.

As I suggested make a complaint, but remember to self assess which seems to be the nub of the problem.

They have admitted that their records are wrong so the correct procedure is for them to ask you to self assess and yu have 30 days from that request to comply.

bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 1 year ago.

Thank you for your support.