Probably the No.1 question we receive relates to HMRC’s tax debt collection mechanism. Whether it’s VAT, Corporation Tax or personal tax, HMRC will pursue the debt vigorously and relentless. Their aim is to pursue the tax debt until it is paid, or the dispute is resolved with the Officer in the Case. Company liquidation and personal bankruptcy are quickly pursued by HMRC and cannot be stopped without the Officer in the case contacting HMRC’s Debt Management Teams. The Debt Management Teams are not interested in whether the tax has been correctly assessed or not, their goal is to collect what the system says is owed.

The associated problem is that HMRC Officers have little appetite in amending an incorrect tax assessment. Further, it is often nigh on impossible for individuals to get hold of the right team, or HMRC Officer, to challenge an inflated assessment and an appeal to the tax Tribunal, or formal complaint, is the only way to get their attention.