HMRC Faces 'Business Destruction' Allegations After Ignoring Taxpayer for Two Years
A taxpayer has made a stark warning that HM Revenue & Customs is poised to "destroy businesses" after allegedly ignoring her repeated pleas for assistance over a two-year period. The individual, identified as Caroline from London, has detailed her distressing experience in a national newspaper, revealing how an unresolved issue with the tax authority since 2024 has escalated into a severe financial crisis.
A Sole Trader's Tax Nightmare Unfolds
Caroline's troubles began in February 2024 when she registered as a sole trader and received her unique taxpayer reference number. Within months, she started receiving letters from HMRC requesting extensive documentation, including bank statements, invoices, and comprehensive details of her business activities. She promptly submitted all required materials alongside a request for clarification on the nature of the investigation.
"I heard nothing more and assumed the matter was resolved," she recounted. However, when she proactively called HMRC in August 2024 to check on the status, she was informed that her taxpayer reference number was under investigation. Despite her efforts, the tax authority, under the Labour Party government, has reportedly refused to disclose which team is handling her case or specify the exact issues under scrutiny.
System Failures and Immediate Financial Consequences
The situation deteriorated further when Caroline attempted to submit her tax returns, only to have them rejected because the system failed to recognise her reference number. More alarmingly, she has been notified that her tax-free childcare and free childcare hours are being revoked due to a lack of evidence confirming her self-employment status.
"This is no longer an administrative inconvenience," she emphasised. "It is having serious, immediate consequences on my family's financial stability and my ability to work." Her statement underscores the profound impact that prolonged bureaucratic delays can have on small business owners and their families.
HMRC's Response and Support Channels
Following intervention from the national newspaper, HMRC issued an apology, stating: "We apologise for the delay in issuing the customer a new reference number." The tax authority also highlighted available support channels for those experiencing difficulties.
Taxpayers encountering technical problems with HMRC online services are encouraged to contact the helpline. Additionally, individuals who require extra support due to health conditions, disabilities, or challenging personal circumstances that hinder their use of online services are advised to call for assistance.
This case raises significant concerns about HMRC's administrative efficiency and its support for sole traders, prompting calls for improved transparency and timely resolutions to prevent similar hardships for other business owners across the UK.
