How to handle HMRC tax disputes
Paying your taxes can sometimes mean that you have to deal with HMRC problems, such as incorrect tax deductions or an amount you owe. It can cause a problem for those who simply want to pay their taxes and get on with life.
HMRC is the body that handles tax, and they collect as much money as possible from those legally required to pay the taxes. However, they also work with those with financial difficulty who prove valid reasons for not paying what is owed.
Read on from this post to learn how you can handle HMRC disputes.
Disagree with a tax decision?
When you are in a situation where HMRC contacts you to say that they want the extra tax you owe, it can be frustrating. You may have paid what was legally due, or it could be that there has simply been an error which means that the wrong amount of tax has been initially taken from your salary.
First, it is advisable to get a good tax lawyer to help you understand the UK tax laws. Get in touch with the person you owe them money to and explain why you believe they are wrong. It could be because of tax code errors or incorrect calculations about how much needs to be paid, so they need to explain this immediately. As they explain this, ensure you:
- Ask for evidence: When you do this, ask for proof that what they say is owed is correct. That means that HMRC will need to show you the calculations and how the money worked out. It could include payslips and maybe even a letter from your employer which states what was deducted from your income.
- If you do owe them money, don’t simply ignore it. If you do owe the tax and you think there is no way to avoid paying, it will become essential to ensure that this is done as soon as possible. If you let this go unpaid, then not only will it continue to increase daily, but HMRC can also add extra charges.
What to do if you believe the tax bill is wrong
HMRC civil tax investigations can be frustrating. When you owe more tax to HMRC, and you know this isn’t the case, then it’s vital to get in touch with them as soon as possible. You can explain why they have made a mistake and ask them to look into this further.
When you are not confident that they will see reason, pass them on to any tax solicitor. We can help you with your case and deal directly with HMRC should it be necessary.
If you need to claim the bill, there are several things you can do:
- Request an explanation of how the tax was calculated.
- Ask for the tax to be recalculated.
- Make a formal appeal to HMRC showing why you believe the tax bill is wrong and include any evidence or proof that this is indeed the case (e.g., receipts and documents).
- If your request is rejected, consider seeking professional help from an accountant who has experience dealing with appeals against tax bills.
If you find yourself in a situation where HMRC demands money from you that you feel is unjust, it’s crucial to get help from someone who can deal with this on your behalf. When you are under pressure from HMRC, it’s understandable that you may not have the time or resolve to deal with this yourself.
Story by Cyndy Lane