HMRC have lost their nerve when it comes to taxing the large corporations, but relentlessly goes after the little people. That has to be the definition of a bully.

http://www.dailymail.co.uk/money/news/a ... -hook.html
Today, this pensioner has received the latest tax demand from from HMRC for the year 2012/13. Not for £billions, not for £millions, not for £thousands, not for £hundreds, not even for tens of pounds; but for £3.18.
The money has to be paid by the 31st January 2014 or interest will be charged on that claimed outstanding sum (no mention of the rate of interest). The tax demand does not contain any explanation as to how HMRC arrive at the 'due sum', it is just a DEMAND for £3.18 for the tax year 2012/13.
I would like to know how much it is costing HMRC to process and post this demand. The true cost is probably many time the £3.18 they are demanding.
Meanwhile HMRC are failing to collect £billions from big corporations such as Amazon, Vodaphone, Starbucks, etc. etc.

i think the term is "low hanging fruit",these people dont have an army of lawyers and accountants at their disposal so are easy game.

Lets not forget all the Govt contracts given to organisations and individuals who are non dom tax payers.

That is a very good point, SOT.

Let's also not forget that HMRC have wined and dined high-ranking officials of large corporations (probably at our expense) in order to discuss tax reduction/tax avoidance by several large corporations. While people like us receive demands for sums that don't even cover the cost of precessing the demand. And what does Government do in response to this malfeasance? Their answer is to impose a bedroom tax for those living on benefits, and create the granny tax for pensioners that very effectively decreases their annual tax threshold.

Lets also not forget, that whilst we may consider sums such as £3.18 to not be a large sum; for MPs who have submitted expenses claims for such trivia as biscuits and cups of coffee, where they clearly consider sums less than £3.18 worthy of claiming.

We have even heard of one now ex-Home Secretary claiming expenses for her husbands porn videos. It leaves a very nasty taste in the mouth to think that my taxes are funding such disgusting and immoral behaviour by the political elite – the very people who come very close to claiming that they have a monopoly on moral values.

It sickens me the way they hound and fleece people at the bottom. A mate of mine is getting letters saying he owes them £1200 in fines for not sending back his tax return. He's never done a tax return and has enough trouble trying to find odd jobs on the minimum wage. He's barely surviving as it is without the worry of escalating fines for not doing something he doesn't understand.

Reply: It sickens me too, Jon.

Both my wife and I have had similar threats from HMRC from the day we retired. I tried to stand up to HMRC by using rational and reasonable explanations, all in writing. Unfortunately, HMRC are quite incapable of rational and reasonable discussion. In the end, both of us referred the whole matter to our MP, sending copies of all communications between HMRC and ourselves, including photo-copies of all threatening letters. Our MP responded by passing the whole affair to HM Treasury with a covering letter requesting a full and detailed explanation. I never did receive a full and detailed explanation from HMRC, but I did receive two letters from them stating that I would not be required to complete a tax return again, unless my income circumstance changed.

Now, HMRC annually demand unpaid tax from me, and usually for such trivial sums as £8, £7, £4.20, and the latest of £3.18. Interestingly, two of those demands later tuned out to be credits, not debts - HMRC actually owed me the money. But when HMRC owe me money I have to formally request in writing that the money be returned.

It is difficult not to conclude that HMRC are not only unfit for purpose, but they are actually an Agent Provocateur.

I'm sure millions on low incomes are due tax rebates every year and don't realise it and don't know how to claim it.