After living outside the UK for over ten years, I return every couple of years to my home country. My only source of income in the UK is from a rental flat managed by a letting agent. Since my agent handles tax payments directly to HM Revenue & Customs, I’ve assumed I’m not required to pay further tax, although I submit a self-assessment tax return annually.

While attempting to file my tax return online, I encountered issues when HMRC’s access code arrived in Brunei after it had expired. Additionally, I lack the necessary identification to log in due to my passport chip being unreadable by the app, which has forced me to submit my returns via traditional mail.

In March, I received a notice from HMRC, demanding a payment of £5,130. It remains unclear if this amount is the result of an error on my part, as the letter provided little context. My attempts to contact HMRC last summer were thwarted by the helpline being unavailable for months. When it resumed operations in October, I faced long wait times, with automated messages indicating a 50-minute hold — a costly endeavor from Brunei. My two letters to the tax office last year also went unanswered, causing me considerable stress.

Troubleshooter Commentary

Numerous readers have reported facing difficulties in reaching HMRC over unexpected tax penalties.

Upon speaking with HMRC, we discovered the reason for your unexpected tax bill was mistakenly reporting your Brunei earnings in your 2021-22 tax return. As a non-resident in the UK, you aren’t obligated to pay UK tax on foreign income, and thus, those earnings should not have been included. This misunderstanding led HMRC to believe you owed significantly more tax. Consequently, late payment penalties and interest accumulated, resulting in the hefty £5,031 demand.

Although you acknowledged the mistake, you previously provided detailed explanations in the additional information box of your return regarding your income from Brunei, which might have warranted greater consideration from HMRC. This could have been clarified with a seemingly simple phone call had you not faced such obstacles in reaching them.

On average, callers spend about 35 minutes waiting to connect with HMRC, with some enduring over an hour on hold. The tax authority mentioned efforts to enhance customer service and encourages users to utilize online resources when possible to free up advisers for those needing additional assistance.

After addressing your case, HMRC issued an apology and corrected your records by removing the Brunei earnings from consideration. As a result, you are no longer liable for late payment penalties or interest and found HMRC owed you £375, due to overpayment through the estimated payments system. They have processed a refund of £375 and awarded you £75 for the distress caused.

Issues with an Etihad Stopover Booking

In February, my wife and I arranged a trip to India and Bhutan, scheduled for October, booking through Mysteries of India, which included business class flights with Etihad Airways. We intended to utilize the Etihad Holidays stopover package for a complimentary two-night hotel stay in Abu Dhabi.

Shortly after booking, I attempted to secure the free stay on the Etihad website using the provided reference number, but the site malfunctioned, preventing me from finalizing the booking despite entering my payment details.

After multiple calls to Etihad with no response, I opted to pay £124 for two nights at a hotel through Etihad Holidays to ensure accommodation during our Abu Dhabi stop. In April, our travel agent informed us that the free stopover offer had been rescinded. Following negotiations, by May, they managed to secure the stopover offer again. However, upon contacting Etihad for a refund of my earlier booking, they mistakenly canceled our free stopover instead. Despite repeated requests for reinstatement of the free stay and refunding my payment, Etihad has not complied, leading me to frustration as I lack a clear method to file a complaint for escalation to ABTA.

Although the financial aspect is minor, the experience is exceedingly vexing. Can you assist? Peter Halliwell.

Troubleshooter Commentary

You rightly had the needed reference number for your complimentary stay, so it’s puzzling that the website malfunctioned. It’s unfortunate that Etihad retracted the offer while you awaited their response. However, since the site did not function when you attempted to book, it’s expected that Etihad honors the original offer valid during your flight booking.

Your travel agent made significant efforts to persuade Etihad to support your cause, yet erroneously canceled the wrong booking. Despite unable to clarify the mishap, shortly thereafter, Etihad reinstated your free stopover and refunded your £124 payment.

Etihad expressed regret over the issues you’ve encountered and confirmed the refund and reinstatement of the stopover offer.

If you face a monetary issue you’d like investigated, please contact [email protected] and include your phone number.

£1,422,089: total amount saved for readers this year by Troubleshooter.