HMRC trying to collect tax from 17 years ago!

[Red80]

Thank you all for the responses. It does seem a really unfortunate situation and I guess the debt just sat there until his return was lodged and flagged it up.

The liability was initially approx £2500, the remainder is all interest and penalties. Would it be worth settling the liability and arguing the interest? can you do that? I know years ago when i worked in tax you could argue interest and penalties but i'm a bit out of touch with how HMRC work these days.

Thanks in advance.

[King_Maker]

I am still confused despite reading this thread several times.

Does he owe HMRC or do they owe him? If the latter, I would request a review from someone higher up the totem pole in HMRC.

If no joy, there is still the Adjudicator to appeal to.

If the information given is correct, HMRC would be likely to lose before a Tribunal and appear incompetent at the same time.