HMRC have issued a distraint letter to one of my clients for £100.
It is claimed to be a late filing penalty for 2012/2013 which my client claims they knew nothing about.
The question is can HMRC do this for such a small amount and is there a minimum amount such as the £750 for insolvency?
Thanks in advance.
Replies (3)
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What do you think?
Why should anybody not be able to recover funds owed?
Why doesn't the client get the information and if it is valid then pay it.
Seems heavy handed
It'd be interesting to know what went on before. The client says he knew nothing about the debt, implying that post didn't get through.
Yet the distraint notice arrived safely.
seems odd
Distraint is now known as taking control of goods. It requires an actual personal visit to the home. Advise your client he does not have to allow entry. Meanwhile consider filing the relevant return/appealing the penalty.
I suspect this is actually just a letter suggesting they might use powers to take goods amongst other "threats" to encourage him to pay.
Typically these days HMRC offload all SA late filing penalties to debt collection agencies as they seem to find that a cost effective way to get them collected. Such agencies will also hassle your client to pay but do not have the power to take control of goods themselves.