HMRC using 'psychological warfare' in crackdown on taxpayers

HMRC is using "psychological warfare" to beat taxpayers into submission, it has been warned. HMRC has gone against its own guidelines to use the threat of debt collectors to repay dramatically inflated tax bills.

Writing in the Telegraph, Keith Alden slammed the taxman, saying he had represented a taxpayer in court. "I want readers to know that the way he was treated by HMRC was not an exception," he said. Mr Alden is a chartered accountant at Mason & Co.

He said: "Some rights and the ease of appeal when HMRC gets it wrong have either been removed or are simply ignored. The tax office has extensive powers that are more likely to be used on the innocent taxpayer that has made a mistake or not realised they should have done something when required.

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"This is even more exasperating when the mistake arises from HMRC error and disorganisation. The responsibility and burden of proof is then passed to the taxpayer." He also warned: "HMRC is fully aware that you may not have the resources to defend yourself and that is all part of the psychological warfare being played out here between David and Goliath. "

HMRC taxpayers face the choice of "selling homes" or "fighting it" but being left with more financial trouble and higher bills if they lose. You can appeal to the First-tier Tribunal (Tax) if you want to challenge some decisions by HM Revenue and Customs (HMRC), Border Force, the National Crime Agency (NCA) and the Welsh Revenue Authority (WRA). You can appeal against most decisions about ‘direct tax’ and ‘indirect tax’.

Direct tax includes Income Tax, PAYE Tax, Corporation Tax, Capital Gains Tax, National Insurance contributions and Inheritance Tax. Indirect tax includes VAT, Excise Duty, Customs Duty. How you appeal against a decision depends on if it’s direct or indirect tax.