Demands are doubly taxing

J.F. writes: A few months ago I received a tax demand for £1,258 from Revenue & Customs. I wrote to it, and it signed a slip to say my letter was received, but all that followed was a further demand, this time for £1,734. I have now sent it four letters, all signed for by the Revenue, without getting a single reply. I questioned the amounts demanded and asked how the figures were reached. Its statements show no calculations, just demands.

ALTHOUGH you have income from the UK, you live in Guernsey, which has its own tax system. This goes some way to explaining your problems, though in no way does it excuse the Revenue’s failure to reply to four letters while still expecting you to fork out for unexplained tax demands.

The explanation is that you are expected to be familiar with the Double Taxation Agreement between the UK and Guernsey. Your tax return asks you to tick a box if you believe the agreement lets you claim the income tax personal allowance as a nonresident.

You did not tick the box, which resulted in the tax demands.

Officials at the Revenue’s headquarters told me: ‘We have contacted Mr F to apologise for not responding sooner, and explained how this happened.’

By the time you read this, you will have received the corrected calculations, and any tax overpaid is being refunded.