What should you do when the “Tax Man” comes calling?

Nobody ever likes to receive a letter or phone call from somebody claiming to represent HMRC, especially if the tone suggests that you have been cheating. You probably already know the feeling – your heart rate increases, your mouth goes dry, and perhaps your hand begins to tremble as you struggle with the conflicting emotions of shock and outrage.

In fact, the emotion of the moment often causes people to react first and think later, which can backfire drastically. In fact, it is one of the worst things you can possibly do.

“That’s not my concern!”

What must be kept in mind at all times when dealing with government agencies and debt collectors is that your feelings and personal circumstances are of little interest to them. They are not paid to take care of you; they are paid to ensure your compliance with their demands.

The Correct way to Respond to calls from HMRC and companies working on their behalf

Any response you give should be completely impersonal and as non-committal as you can possibly manage. Here is a simple list of things you should and should not do if approached by HMRC, Concentrix, or any agency threatening you with debts or potential legal action:

• Do be polite – most people that these agents deal with on a daily basis are so rude and horrible so the contrast in your behaviour may cause them to back down a little.
• Avoid saying “I’m sorry” – many people when trying to politely decline a demand or request by the caller will often respond with “I’m sorry, but…”.   It is perfectly acceptable to substitute with “I understand what you are saying, but…”
• Do not admit or acknowledge the alleged debt – any acknowledgement may be used as evidence that you knowingly withheld money that you were legally obliged to pay.
• Do not deny the alleged debt – regardless of your innocence, you will simply be wasting your time and theirs. Even worse, if you are mistaken and it can be proved that the debt is legitimate, your denial may be used as evidence that you are untruthful or have an unreliable memory.
• Do mention you need to obtain legal advice before responding – there is nothing wrong with this and it will not harm your situation, even if the caller attempts to intimidate you into thinking that it will.
• Do not just ignore the situation – if you simply do nothing and just hope for the situation to blow over, everything will get much worse for you. It is important to get legal advice as soon as possible.
• Do request the full name and contact details of the caller – you have every right to know whom you are dealing with.
• Never bargain, beg, plead, or make excuses – the caller doesn’t care about you, so all of these actions will only harm your position and will not help one bit.

If the contact you receive is by letter or email, then do not offer any immediate response at all. Bring or forward a copy of the letter or email to the Hylton-Potts office in London and we will advise you.

Not all Contacts are Legitimate

An increasing problem that’s happening all across the world is people being contacted by scammers via phone, email, and letter with demands for the payment of alleged tax debts.

One famous case that made headlines recently was a woman in the United States who was contacted by scammers demanding outstanding taxes owed to the US Government. When the woman broke down in tears and told the caller she was nine months pregnant, the scammer had a change of heart and confessed that the call was a scam.

What is very important about this case is that the caller had intimate knowledge of many personal details of the victim, and so was very convincingly able to act the part of a genuine agent for the government. If the caller had not confessed to the scam, it is possible that the victim may have paid the “debt” that was being demanded.

Therefore, you should never assume that any contact you receive claiming to be on behalf of HMRC is legitimate. Conversely, you should never assume the opposite either. Many people automatically assume they are the victim of a hoax and ignore the contact they receive, and consequently have their tax credits cut. You should always act with caution and deal with the situation calmly, seeking legal advice quickly.

Not all Debts are Legitimate

Another problem is that staff working in agencies such as Concentrix (an American firm that has been contracted by HMRC to collect debts on behalf of the government) are often under pressure to meet quotas. Quotas are a terrible thing in any matters related to law, because they are a major source of corruption and unethical practice.

In the US, a similar quota situation exists, and so many wrongful debts have been signed off by the courts as actionable that they have even come up with a name for it: “Robo-Signing”.

This is an apt name for the phenomenon, because as we have pointed out, the government often behaves like a machine, and the various agents tend to be like robots carrying out the will of the machine. Just like a real machine, the government never admits to being wrong. If there is an error, it is assumed that it must be you who is at fault. And the robots behave accordingly!

Your legal consultant will investigate on your behalf and can often get more access and co-operation than you might experience acting on your own behalf.

Understanding your Rights

Here are a few useful things to know about dealing with debt collectors:

• Under the law, debt collectors such as Concentrix have very little power. They are not police, or even government employees. You do not have to provide them with any personal details about yourself (and should not), nor are you obligated to comply with any of their demands.
• Debt collectors are not bailiffs. Bailiffs are special officers appointed by the court to recover assets in lieu of money owed. Debt collectors have no real power other than to take you to court or have your tax credits stopped.
• You always have the right to legal consultation before taking any other actions, and you should exercise that right.
• Debt collectors are not allowed to harass you. The maximum they are allowed to do is inform you of the alleged debt, occasionally send reminders to you about the debt, and take legal action to recover the debt through the courts.

This also means they may not:

• Threaten you, or attempt any sort of intimidation
• Verbally or physically abuse you
• Call you several times per week or at unreasonable hours
• Harass you through social media, or post defamatory information about your situation on the Internet

Hylton-Potts do Care about their Clients

Unlike the government agencies and debt collectors, we really do care about your feelings and your personal circumstances. Our concern is 100% on ensuring the protection of your legal rights, ensuring you are aware of your rights, and attempting to get the best possible outcome for you in any legal action that may arise against you.

If you are contacted by Concentrix or any other agency claiming to be acting on behalf of any government agency, it is essential that you follow the advice given in this article regarding how to deal with them, and then contact us as quickly as you can.