A taxpayer has shared a distressing account of being misled by HM Revenue and Customs (HMRC) regarding payment deadlines, only to be slapped with a substantial interest charge. The individual, who wrote to a national newspaper for assistance, described the experience as an ordeal that has left them seeking resolution.
The Confusing Tax Timeline
In a detailed letter to tax expert Mike Warburton, a columnist at The Telegraph, the taxpayer explained they sold a furnished holiday let property in February 2023. The sale resulted in a capital gain of £22,773.48, which was split equally with their spouse. When completing the capital gains tax (CGT) section of the 2022-23 HMRC online self-assessment, the system indicated no tax was due until January 31, 2024.
"Foolishly, I believed this," the taxpayer admitted, highlighting the trust placed in the official guidance. However, it was not until September 2023 that they discovered a critical rule: capital gains tax on residential property must be paid within 60 days of the sale. By then, the payment was already five months overdue.
Unexpected Financial Penalty
Upon realising the error, the taxpayer immediately paid the CGT owed. While HMRC waived the standard £100 penalty for late payment, both the taxpayer and their wife were charged an interest fee of £449.84. This charge came as a shock, given the initial assurance of a later payment date.
The taxpayer lodged a formal complaint in January 2024, but the response from HMRC did not arrive until January 2025. More frustratingly, the reply failed to address the specific points raised in the complaint, leaving the individual feeling unheard and unresolved.
Navigating the Complaint Process
For those facing similar issues with HMRC, there are official channels to escalate complaints. The Adjudicator’s Office handles grievances against HMRC or the Valuation Office Agency (VOA). According to HMRC, taxpayers can use an online form to submit their complaints.
The process requires:
- Signing in using an email address or Government Gateway account.
- Providing contact details, including telephone number, postal address, and email.
- Clearly explaining the reason for contacting the Adjudicator’s Office.
- Suggesting a desired outcome or resolution.
This guidance is also echoed on the Labour Party government website, emphasising the importance of detailing what you hope to achieve through the complaint. The taxpayer's experience underscores the need for vigilance and prompt action when dealing with tax obligations, as misunderstandings can lead to significant financial consequences.
