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When you left in 2001 did you send a Form P85 to your tax office?
Then you should send one in immediately. Fortunately, there is no time limit as to its submission, it is available on the web and can be filed online. This will put your tax position in perspective.
Are HMRC's demands for these earlier years correct, or are they their estimates of what they think you should have earned? That Department is very keen on making assumptions, invariably incorrect and always in the revenue's favour. If they are wrong then you should appeal against their assessments which you do by merely writing a letter. HMRC can go back indefinitely to recover unpaid tax.
I am so sorry to have to rain on your parade.
Then you should remind them tartly of the position they adopted in Court that you had business losses to offset the income, a small matter that they have conveniently forgotten!
Also, the time limits for recovering tax debts is 4 years for normal situations, 6 years where there has been careless behavior on your part or 20 years where there has been deliberate behavior on your part. As this matter went to Court and the taxman emerged with egg on his face the Department's position is dodgy to say the least and their demands should be rejected out of hand as time expired.
Yes well, that is the theory, but it is modified by Departmental practice as I explained. There is no need to go to Court, a letter will suffice.
To what payments do you refer? If they are for 98/99 you should demand a return of the sums involved as any tax debt is time expired.
Well, tell them to take a running jump for trying to collect taxes which are not owning in any event and time expired to boot. Tell them that any action they may care to take will be most vigorously defended and in any event you have an absolute defence. HMRC will always adopt a try on in the hope that the taxpayer will just roll over and pay up; don't!
Not a request, a demand; HMRC are far to keen to try to recover tax to which they are not entitled. I was once faced with an Inspector of Taxes demanding immediate settlement in cash for tax which was not even due. He did not get it needless to say, merely reported to the Senior Inspector in the office and the company received an immediate apology and a cancellation of the demands.
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