HMRC making bankrupt for bill I don’t owe

GeorgiaJetson

Free Member
Nov 14, 2017
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Please help. HMRC are chasing me for a VAT bill I don’t owe them relating to a business I had many years ago. I’ve never earned enough or was required to be VAT registered. When I had the business their own inspectors visited on a number of occasions and were satisfied with how the business was being run. They did not recommend or instruct VAT registration any at point.

I’ve been disputing the bill for 10 years and it has been reduced significantly (by over 75%) during that time due to a dispute resolution meeting. This time scale and huge reduction clearly demonstrates they’ve made a mistake. Unfortunately they did not complete the process of the resolution meeting to get the matter resolved completely. I haven’t heard anything from them for a few years and now out of the blue they are making me bankrupt and have passed the case to their legal department.

I have severe health issues (which they are aware of) and this is making them much worse. My ability to work is extremely limited if at all and I’ve been signed off work by my GP for years. I can’t lose my home and have the struggles of a bankruptcy, I’m not well enough. I need someone with expertise on bankruptcy and HMRC/VAT legal expertise. Any recommendations or advice greatly appreciated.
 
What has your accountant said?

There are probably a lot of little details that you either haven't mentioned or do not want to (understandable), but you really need professional advice.

BTW was it a limited company or were you a sole trader and what is the debt value??
 
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Please help. HMRC are chasing me for a VAT bill I don’t owe them relating to a business I had many years ago. I’ve never earned enough or was required to be VAT registered. When I had the business their own inspectors visited on a number of occasions and were satisfied with how the business was being run. They did not recommend or instruct VAT registration any at point.

I’ve been disputing the bill for 10 years and it has been reduced significantly (by over 75%) during that time due to a dispute resolution meeting. .....

If you werent registered for VAT and werent required to do so what is the bill for?
 
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What has your accountant said?

There are probably a lot of little details that you either haven't mentioned or do not want to (understandable), but you really need professional advice.

BTW was it a limited company or were you a sole trader and what is the debt value??
My accountant has been helping me fight this but it just keeps going on. He’s going to write them a letter (he has written them many over the years as I expect you can imagine) but I’m looking for all the advice and support I can get with this as despite all the letters there still seems to be no one at HMRC who is able to cancel the bill or write it off. I am a sole trader, always have been. The original bill was around £75,000. Then it went up to approx.£140,000 with backdated penalties and interest, then after dispute resolution procedures (which were left incomplete by HMRC) it went down to around £35,000.
 
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What did your accountant say was the issue?

Like may things, there is going to be a lot of detail on this issue, most of which you might not want to post here.

Can you at least say what the issue is in a couple of sentences?
 
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If you werent registered for VAT and werent required to do so what is the bill for?
The bill was for backdated VAT. There was a rule change in 2012 for VAT registration, but I came away from my business and no longer owned it from 2011 and I proved this. They apparently are able to backdate VAT bills even though the new rule didn’t exist during the time period they billed for, they used an estimate to base the bill figure on. I’ve been fighting it for 10 years.
 
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Were you in the events/fairs business?
 
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