To ask for help about tax?

[usernameiwanted]

A family member has just had a phone call from the tax office saying the owe £5000 from being self employed for 4 months in 2010.

Family member disputed this on the phone and after some time discussing, was told the bill was now just under £700 which was to be paid in 6 monthly payments.

On questioning this with family member (who admitted to being very confused during the phone call), family member informed me it was the interest from the (mistakenly charged) £5000 the tax office have said she can't get out of paying!

AIBU to think they are taking the absolute piss?! They mistakenly say she owes £5000 from 2010 and then make her pay the interest from that? What can family member do? Surely this is daylight robbery!

They are taking a piss.

I can't help you though. Sorry.

Surely she either owes it or she doesn't? If she doesn't then they can't charge interest? I assume she's kept all the necessary paperwork and asked for details in writing of what they claim is owed?

Odd to do this over the phone, is she sure it's the tax office?

I don't think the tax office call anyone, I think they write a letter. IME.

I would google the contact details of HMRC (if in the UK) and ask them about it.

agree - it's a scam. And you're not taxable just from being self-employed. You need a tax return, class 4 NICs, etc....

Its a scam. Get the family member to contact HMRC personally.

Scam. Tax office send letters. Ask her how would they get the phone number. Report to police and tax office x

If they call again ask them to put it in writing. They could still chase tax payments from 2010 and charge interest but not normally over the phone or by email. Your family member could ring HMRC themselves to check the situation and report their suspicions.

I agree - not much chance that HMRC would call anyone as they would need to send paperwork showing a breakdown of the outstanding amount owed including any penalties and interest. The fact that the bill started off at £5000 but was dramatically reduced after a phone call is immediately suspicious too. Tell her not to pay anything and contact HMRC to confirm any details and alert them to the scam.

This sounds like a scam. Firstly, HMRC do not ring you to ask you for money. Secondly, you can't just barter the figure down over the phone and get an on the spot reduction.

Thirdly, I doubt they would have left it five years before asking.

Has she had any paperwork from HMRC? My advice is to do everything in writing

Scam. Definitely.

I would say its a scam. Never know hmrc to call to let you know.

If your family member reported the phone call correctly it sounds as if this is complete nonsense.

What correspondence did they have? HMRC runs on paperwork - this situation sounds extremely dodgy.

Thank you all. I will inform family member to ring the number on the website to ask if they rang her or not today!

Paperwork, notice to pay and then reminders. My daughter says that is how it works. Make sure you ring a national tax office number and not one given you.

Scam. Hmrc do not phone you.