HMRC debt collection agency

There is no tax outstanding, how do I get the debt collection agency to close the account

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My client received a letter from an HMRC debt collection agency chasing payment of outstanding Corporation Tax.  However, I had submitted a Corporation Tax return for the following period with losses carried back that HMRC hadn't processed which cleared the debt.

A phone call to HMRC got the loss carry back actioned and the debt is now cleared on HMRC's system.  However, the debt collection agency say that they can't clear the account until HMRC withdraw the claim.  HMRC say that they can't withdraw the claim, the debt collection agency need to send it back.

After two and a half hours on the phone between the debt collection agency and HMRC being told contradictory tales of how the process works, does anyone please have any pearls of wisdom on how to get this sorted??

Replies (4)

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By Malcolm McFarlin
27th Jan 2020 12:20

I'd make a formal complaint against both and seek costs.

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Replying to Malcolm McFarlin:
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By Ruth Pringle
27th Jan 2020 12:56

Might be worth a try, but I'm not hopeful!!

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By SXGuy
27th Jan 2020 12:23

First thing you do is leave the phone alone.

2nd thing is you write to the debt collector and you remind them that the debt has been cleared and they should refer to hmrc.

And lastly you remind them that failure to do so will be treated as harrasment and you quote the law surrounding harrasment.

In other words they are harassing someone for a debt that doesn't exist and so therefore if they continue your client can seak legal action.

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paddle steamer
By DJKL
27th Jan 2020 12:52

Just tell the debt collection agency to go away, if their client wishes to commence legal action they can make your day.

I have similar re some CIS, HMRC have it allocated incorrectly so that whilst overall account has no liability one month has liability and they have an unallocated receipt. Last time they contacted me I just told the debt collectors to talk to their client but if their clients really wanted to proceed to court I would be happy to subsequently pursue costs- they have now been quiet since just before Christmas so it may have worked.

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