My Tax Return

Zack_2

My tax return is still not complete. I have 29 days to complete it online and pay up to the taxman, but I'm scared. I didn't put enough money aside while I was self-employed and I know I'm going to be at least a couple thousand pounds short.

I'm losing sleep about it and I'm so very scared.

I suppose I want to know if there are organisations that'll help me with such a big problem, or if the Inland Revenue will help me if I tell them I can't pay up. I've got a pretty poor recent credit history - I applied for a Capital One card in the middle of last year and they offered me just a £500 credit limit.

Ideally, I'd like to apply for a loan somewhere that I know I'll be accepted and I can then worry about repayments. For now, though, I just don't want to even file my tax return.

It sounds stupid now I've read all that back to myself, but that's where I am right now. Thank you for sharing any advice. It'll be greatly appreciated.

poppy52

I have been in this position - still am in fact. Phone the Inland Revenue - usually they will let you pay in installments. I have done this twice before. Now I am on a DMP and still owe the IR £3500 - this has been included in the DMP and the Inland Revenue are accepting very small montly amounts. I am no longer self employed, thank God, and am now paying PAYE. Do not, whatever you do, avoid filling in the form - if you are late with it they will fine you and will get stroppy. If you are honest with them they will be helpful - before my DMP went through and I thought I could go it alone they asked me to send an income/expenditure form before they would discuss paying in installments, but at no time did they get threatening! I have found the best way is to be totally up-front with them, keep phoning and keep writing so that they realise you are being serious. At one stage, they also said when I had got my payments up to date I could send them money on account and it would go towards the next bill - so that I wasn't tempted to spend it.

Kevicho

Im in the same boat, although i owe 486quid (work half the year self employed (most of that as a student as well) and the other half normally)

Im going to phone them tommorrow and see if i can set u pa DD for 150 a month starting from feb (which is when i will have spare cash) :S

Otherwise ill have to find a some way

Zack_2

Thanks for that, Poppy. Does a DMP mean that I'll have a poor credit rating all over again then? Is it something the IR will set up for me? Is there an interest rate of any sort?

poppy52

A DMP is usually done by one of the free debt organisations like CCCS or Payplan, not by the IR. It does affect your credit rating - but mine is already hopeless anyway so it's no real loss. It covers all your creditors, not just IR. The IR can set up its own plan for unpaid tax - you still pay interest though. As I said, I've done this twice in 12 years with the IR, but am now on a Payplan DMP and the IR is just one of my creditors. Do phone them though - they get very stroppy if you just ignore them and can be quite human if you are honest and up-front about your problems.

kevker

The Inland Revenue in general are exccellent, and would rather see some money, than no money at all. If you have other debts, then this one MUST take priority, but if you are reasonable with them then they will be reasonable with you. The important thing is to contact them sooner rather than later. If you owe VAT though, then that is a whole different story.