Unpaid tax demand i can't afford to pay HELP!

19lottie82 · 10 February 2011 at 12:23PM

Not sure if this is the right thread for this, but anyway…….

A few years ago I worked a second job and I have just had a notice from the tax office telling them that I owe them £2700 in underpaid tax.

I have read online that if you owe over £2k then they will demand it all back in one payment.

I am starting to panic as I have no savings, my income after tax is £1300 but my outgoings are £1157 a month, which leaves me (not including clothing, any entertainment or unexpected costs such as household or car repairs)…….

As you can understand, I am in no position to pay it back, either in a lump sum, or even over 12 months. I am starting to panic slightly!

Has anyone got any advice before I call them up to discuss the money owed? Thanks!

fermi · 10 February 2011 at 12:28PM

Hare you read this yet? Tax chaos Q&A: How to fight HMRC demands

19lottie82 · 10 February 2011 at 12:37PM

great, thank you!

bargainbetty · 10 February 2011 at 2:22PM

Once you have gone through the very excellent link provided, remember one thing - there are real humans working at HMRC and they are actually remarkably approachable.

If you find that you do not qualify for the cancellation of the charges in part or full, contact them and be upfront with them about what you can afford. You can explain your income and outgoings in general terms and come to a reasonable payment plan. Don't offer too much and end up defaulting, that will make it go very bad, very quickly. If you talk to them, and keep them informed of your situation, they are pretty decent to deal with. Confirm it in writing.

I know everyone thinks the taxman is the devil, but lots of them there are fundamentally decent people who realise that people can't pull money out of thin air. Talk to them, treat them as humans, and keep them informed. They will try to help.

Good luck x

Anne42 · 10 February 2011 at 2:27PM

Hi,
the tax office is not unreasonable if you disclose everything and don't try to cheat the system. Phone up, explain your situation and ask if it would be possible to adjust your tax code so you can pay back the money you owe gradually.
Good luck.

19lottie82 · 10 February 2011 at 4:49PM

thanks guys, i suppose there is not point working myself in to a tizz about it until I have actually spoken to them!

davingtonp · 15 February 2011 at 5:20PM

The Inland Revenue is now seeking repayments of tax underpaid in tax year 2007/08 despite the fact that the figures were given to them in employers returns in good time but have been ignored by HMRC until now.
I have written to them pointing out how unfair this is as I do not have any records now to check and they should have done something about this within a year of the end of the 07/08 tax year. I have asked them to write off this tax and now await their reply - hopefully......

dancingfairy · 15 February 2011 at 5:22PM

people should get their records for 6 years plus the current year to be on the safe side - why haven't you got any records? without any records I can't see that you can challenge them sadly.
df

Unpaid tax demand i can't afford to pay HELP!

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