Recently HMRC passed on a tax bill to the Insolvency agency.The original bill was for £4000. The bill was for a period of time after my wifes business ceased trading.My wife phoned HMRC when the first bill came and informed them she was on PAYE and told them when her business was wound up.When the business was wound up she phoned HMRC to get a figure for her final tax bill and settled this with a cheque.But for some reason HMRC had not taken her off self assessment .
6 years later another bill turns up with colossal interest added making the bill £20,000 from £4000.Again my wife phoned HMRC to inform them she has been with PAYE employers since the business ceased trading.She also sent a letter by recordered delivery with all this information.
Then a few weeks ago a letter shows up from the Insolvency Agency to say she has been made bankrupt.She attended a meeting and was told by the interviewer that something didn't seem right about this and that she should challenge this.She was then told she could only challenge this after settling the bill and all paperwork completed.After all charges this bill rocketed to £36k.My wife was told that unless the bill was settled she would have to put our home up for sale to cover the bill. Luckily a family member stepped in and helped her out.
How can my wife challenge this? It clearly is not right. Would she need to seek advice from a solicitor that specializes in these cases or would she need to go to an accountant? I really do not know where to turn. The whole episode makes me feel sick to the stomach that a government agency can act in such a way.The stress has been horrendous all for something that is not even owed.
Any advice would be most appreciated.
6 years later another bill turns up with colossal interest added making the bill £20,000 from £4000.Again my wife phoned HMRC to inform them she has been with PAYE employers since the business ceased trading.She also sent a letter by recordered delivery with all this information.
Then a few weeks ago a letter shows up from the Insolvency Agency to say she has been made bankrupt.She attended a meeting and was told by the interviewer that something didn't seem right about this and that she should challenge this.She was then told she could only challenge this after settling the bill and all paperwork completed.After all charges this bill rocketed to £36k.My wife was told that unless the bill was settled she would have to put our home up for sale to cover the bill. Luckily a family member stepped in and helped her out.
How can my wife challenge this? It clearly is not right. Would she need to seek advice from a solicitor that specializes in these cases or would she need to go to an accountant? I really do not know where to turn. The whole episode makes me feel sick to the stomach that a government agency can act in such a way.The stress has been horrendous all for something that is not even owed.
Any advice would be most appreciated.
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