Tax Debt Help!

bargaingaz

My friend owes the tax man around £11,000 from his old business, he doesn't have any where near that money, they have been ringing him up recently for the full payment and today he got a letter stating payment should be made by the 31st jan and if he cannot pay recovery proceedings will take place
is there anyone in a similar situation or could give any advise this would help him out a lot and has anyone got their debt halved in any situation
thanks for any replies :rolleyes:

Northernbird_2

My OH owes tax, and he can't pay it in full. He wrote to them explaining he couldn't and proposing he paid in installments. He had to give them details of income & expenditure. They haven't called him for 2 days and he can't get through to them, so he's faxed them twice explaining everything and he's proposed a payment plan with the details.

When he did speak to them on Monday they were a little funny, but I think they must get people trying to avoid paying all the time so they're on edge and have to be tough. I'm hoping that because he's keeping in touch with them and not leaving it, they'll be ok. They did ask about my income (which he didn't give), and said any savings he had (which he hasn't got any of anyway) should go straight to them.

OH is still waiting to hear back from them, so I can't give much advice except don't leave it, keep in touch with them and whatever you do don't ignore it. They've got pretty tough powers and, as an accountant once explained to me, you're just a name on a list and they work their way down the list and do what they have to.

Good luck - I'll let you know how OH gets on.

bargaingaz

cheers for the advise

grumpyoldgit_2

You have this posted in at least one other forum - I have replied there
GoG

tigtig

I to have a tax debt but smaller than your friends mines £1386 from having a company car in my last job and me not filling in my tax return correctly. Doh!!

There's no way i can pay that in one go, so i sat down and did my income/exp for the next 12 months and sent that off to the IR. In my letter i offered to pay them a monthly figure. Starting on the 23rd Jan. After i sent all my stuff off to them i rang them every day to see if they would accept my offer. They now have.

The best thing i could have done was to be in contact with them constantly.

Really hope your friend sorts it out, i was really stressed about the whole thing but the people at the IR recovery office was really helpful.

lottie$_2

Be aware that if you leave it too long the tax man will make you bankrupt, and not enter into any arrangement - this happened to my OH about 3 years ago......