I am a UK citizen who is a legal permanent resident of the USA. For the past three years on my U.K. Tax return I have mistakenly declared my world wide income and tax paid to the IRS. The inland revenue decided that I had overpaid taxes and paid me money back accumulating to over 10000 pounds.
During an investigation the inland revenue discovered my mistake and informed me of my mistake. They are now demanding that I pay back what I owe. Because of additional financial problems because of my wife becoming disabled we are now homeless and living in an old motorhome. We no savings or assets. We have no way of paying this debt or even keeping to a reasonable payment arrangement.
What do you suggest I do? Bearing in mind I live in the USA what can the inland revenue do to me? Can I be taken to court in the U.K.? Can our 27 year old motorhome (our only home) be taken away to pay part of the debt?
I am sorry to hear of your misfortune, and do hope things improve for you.
HMRC has no authority in the US, so they are not going to be doing anything more than trying to chase you for the money they say you owe.
They will not take your motorhome, even if they did have authority in the US as it is your home.
As to what to do, unless you can afford to set-up a repayment plan, there is little you can do. You can make HMRC aware of your situation, and that you cannot pay anything at this time.
Should you return to the UK and re-establish yourself here, you could look at discharging the amount owed in a DRO/Debt Relief Order, or depending on your full circumstance, bankruptcy.
Your main interest now and where to concentrate is on is your wife and her health, and also work and getting life back on-track. HMRC is last on that list.
I hope this helps, and let us know how you get on or if you have any other/additional questions.