A client recently had a letter from DMB claiming that there was a debt of £1100+ owing on the PAYE for Month 11 of 2014/15.
I found the payment, told them when it was paid and said, OK, if you've allocated that somewhere else, tell us where it is.
I got a schedule covering 2013/14 and 2014/15, there were three payments missing from it totaling around £5000.
* A payment of £2274.35, made to Sigma Red, a legitimate debt collection agency, folk who rang up the client, told him he owed £2274.35 and they wanted it by card over the phone now.
* A payment of £109.60, similar story to above, marked on the bank statements as "Tps (HMRC)".
* A payment of £2877.04, month 12 payment, inexplicably paid twice by client (clasps hand to brow in frustration).
Anyone come across this Sigma Red before ? Has my client been scammed ?
Obviously, HMRC won't be getting any more payments over the phone in the foreseeable future.
Replies (10)
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According
to the Guardian, they are used for the collection of overpaid tax credits :
http://www.theguardian.com/politics/2014/may/30/hmrc-using-a-dozen-tax-c...
"Clanchatton Birmingham Limited trading as Sigma Red"
Sigma Red -- and DCAs
I have had only negative experiences with DCAs, who are usually appointed by the Tax Credit Office to pursue alleged debts. In all the cases I have dealt with, a number of mistakes have been made by the TCO, which they have failed to acknowledge, and then go on to ignore all subsequent correspondence attempting to resolve the problem.
If the first DCA, having been sent copies of all relevant letters, fail to make any progress in collecting the alleged overpayment, the TCO then appoint another DCA to go through the same process !
In all cases, I inform the DCA that unless the TCO reply adequately to my correspondence, and the matters raised disputing the debt, they (and the TCO as Principal) are guilty of unreasonable harassment, and should desist.
In the event of being unable to obtain a resolution with the TCO, I have referred the matter to the Adjudicator.
I have not had the experience of correspondence with DCAs appointed to collect unpaid PAYE. In my opinion, this is a much simpler matter to deal with, as the PAYE liability is easy to calculate and not subject to the same imponderables in calculation as tax credits.
Sigma Red
I too have had a negative experience of this firm, but nothing to do with taxation, Scottish Power made an erroneous transfer of my energy account. As I had signed no contract with Scottish Power and was using a different energy supplier I referred my case to the energy ombudsman to have the debt discharged. They seem to have a total lack of business acumen, threatening to blacklist me before a decision had been reached.
Credit collection agencies
If I owed money to HMRC and I was chased by a credit collection agency I would pay HMRC. I wouldn't want the hassle you will have to go through.
Credit collection agenciess
I agree 100% Peter, but would you pay them money you did not owe just to get them off your back?
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HMRCs responsibility
They contracted Sigma. Send them proof of payment and tell them to go whistle