HMRC want £5500.00 in tax paying in 7 days

[Debbs]

Hi Guys, Can someone please advise me how my friend should deal with a demand for tax. She is self employed and has various debts one of which is tax. She completed her tax returns over 5 years all at once last year which ended in a tax bill of around £8K. Her income has fallen by half due to commissions and she cares for her mum so cant go get a job as her mum needs her regularly throughout the day. She has been paying the tax bill off at around £150 a month but this means that she is getting more into debt with things like gas/elec etc. She received a letter from HMRC saying that they want £5900 within 7 days or they will go to enforcement. £1900 is already with a debt collection company and she received a letter from them today too. I think the whole debt bill is £5900 and the letter from HMRC is for the whole amount. She has spoken to them on a couple of occasions and both times they said they would call her back and never have and have got very shirty with her. I said I would happily talk to them on her behalf as she struggles with stressful situations but I was wondering if there was a process she should be going through or maybe going via CAB. I had the same problem a few years ago and HMRC sent an advisor round to my house and he discussed a payment plan with me which I have kept to and they haven't harrassed me since. Your advise would be appreciated. Thanks

[Undercover Elsa]

Re: HMRC want £5500.00 in tax paying in 7 days

Hi Debbs,
Is your friend sure that the bill is correct? Is it based on her own tax returns or an assessment?
If the bill is correct, HMRC must consider it if she asks for time to pay off the arrears. She needs to explain her circumstances re being her mum's carer and any other issues, and enclose an income & expenses sheet with her offer of payment.
CAB do one which can be completed online and printed out: https://nedcab.cabmoney.org.uk/quickfs.asp

She may also be able to get help from TaxAid if she's on a low income and the problem can't be sorted out with HMRC. Help Line: 0345 120 3779 Website: www.taxaid.org.uk


I've attached their advice leaflet

Elsa x

[Debbs]

Re: HMRC want £5500.00 in tax paying in 7 days

Bit of an update... We rang HMRC to discuss what arrangements could be made. Very aggressive tax advisor said she could give 12 months to pay it max. My friend said she only could afford £100 a month so the woman gave her a lecture on managing her money properly. A day later a letter from a debt collection firm arrived so we rang them explained the situation and arranged a payment plan. So iy seems its sorted for the moment. Thanks for your help

[nanna58]

Re: HMRC want £5500.00 in tax paying in 7 days

Why are staff so unhelpful and rude? xx

[SXGuy]

Re: HMRC want £5500.00 in tax paying in 7 days

Glad you got it sorted. For future reference, hmrc won't deal with anyone regarding paying it off unless it can all be paid within the same tax year. The only way to negotiate is when it's passed over to their collection team. They can be very heavy handed and even demand you sell your TV but you just need to keep calm and reiterate your points. If your friend completed 5 years of tax returns a big part of the tax due would be penalties for non filing. 1200 per year from 2011, plus interest at a daily rate on any tax overdue. If you had come to me sooner I could have taken a look at the returns prior to submission to see if you could have reduced the liability but it's a bit late now really. The good thing is they have agreed a repayment. So providing its kept up to date there should be no more issues.