Business takes fight to HMRC

A Rochdale business is at war with the taxman.

The firm is taking on HM Revenue and Customs following the revelation that millions of people have had their tax miscalculated in recent years.

The financial fiasco means some people will have to pay over £2,000 in unpaid tax.

In anticipation of the pain this will bring, Milnrow based MCA Accountancy and Tax Advisers have decided to fight the taxpayer’s corner.

People who want to protest against their bill from HMRC will be able to get professional advice and assistance from MCA in a bid to hold on to their cash.

Caspar Headland of MCA said: “The letters should hit people quite soon. People can come to us and we will fight on their behalf so they don’t have to pay it [the tax].

“The Revenue has really messed up the payroll for a lot of people. We don’t think they should have the right to do this when they were the ones who put the system in place.”

HMRC have apologised for the mistake, but are not convinced that claims from individuals with the backing of firms like MCA will be successful.

An HMRC spokesman said: “We are very sorry that some people will be facing an unexpected tax bill, however, where there is tax to pay, it would be irresponsible for any accountancy firm to lead customers to believe they will not have to pay the tax due, unless there is clear evidence that HMRC are 'out of time' to claim, and the employer has done everything they could do to alert HMRC to the change in circumstance, which is what we refer to as ESC 19.

“Whilst some people will be able to rightly invoke ESC 19, our experience tells us that this will be the minority.”

MCA believe taxpayers have a right to fight the bills and are confident of delivering positive results.

Mr Headland said: “We wouldn’t do anything to waste people’s time. We will write to the revenue on your behalf and try and fight it.”

The HMRC blunder has created a shortfall of around £2bn. People owing less than £2,000 will be able to pay back the money in instalments.

An HMRC spokesman said: "HMRC apologise to anyone facing an unexpected tax debt. We are committed to recouping the money owed as painlessly as possible, and where customers have difficulty paying, we can make arrangements to pay the tax due back over a number of years.”