Welcome and thank you for giving me the opportunity to assist you with your tax question.
I'm sorry for the difficulty your daughter is having with paying the VAT tax bill. From my research, it seems the HMRC has done all that it is going to do regarding the amount owed by your daughter. Unfortunately, as you are probably well aware, HMRC is very strict with repayment of what is owed. Please see the following: http://www.hmrc.gov.uk/payinghmrc/problems/cantpay.htm
My only advice would be for your daughter to increase the monthly amount she is paying to compensate for the interest HMRC is charging and/or continue to try to borrow the money to pay this tax from other sources.
I am truly sorry that this is not the answer you and your daughter wanted to hear, but I would be remiss if I didn't tell you the truth.
Thank you and best regards.
If you read my query properly you would see that my daughter has paid her VAT bill in full, it is the fact that they stated that she owed no more tax to the tax man himself that is the problem, why then is she being persuade for £9,000 in tax ????
I apologize for misinterpreting your question. I was under the impression that your daughter was informed that she owed no tax, she believed that she did, she received a check from HMRC and cashed it, and then was informed she owed tax.
I would advise your daughter to visit the local HMRC office and explain the situation in full to the representative. At this point, it may be worth her time to have the entire situation reviewed, especially if it will result in reducing the amount of tax that she owes.