Please help £5,000 tax bill

CharlotteandEden

Hi my OH has an income tax bill of £5,000 which spans this year and last. He has already agreed to pay last years at £200 a month and this is too steep and he can't afford it. Just wondered what can be done to either reduce payments or make an agreement to pay. My Dad suggested he can get his tax code xhanged so the tax is taken that way but I am unsure about his. Any help is greatly appreciated before we ring them just so we know where we are at and what to ask for.

chriiiiiiiis

If you're having difficulty making payment, call HMRC.

http://www.hmrc.gov.uk/pbr2008/business-payment.htm

He can only have his balancing payment included in next years tax code if the amount is less than £2000.

System

Is your OH self-employed or an employee through PAYE?

Mikeyorks

chriiiiiiiis wrote: »

If you're having difficulty making payment, call HMRC.

http://www.hmrc.gov.uk/pbr2008/business-payment.htm

But as there's clearly an existing arrangement .... it's the office you're currently in touch with you need to contact ... not the new business line :

If we’ve already contacted you about an overdue payment or if you already have a payment arrangement with us

If we’ve already contacted you about an overdue payment it’s important that you call the original office that contacted you. They will be ready to discuss payment arrangement options with you and explain how to avoid legal action being taken.
If you already have a payment arrangement with us but have additional concerns about what you can pay, the office you’ve been dealing with will be able to discuss further options with you. You’ll find the contact details you need on the correspondence sent to you.

chriiiiiiiis

She states that last years bill (assuming she means balancing payment for 2006-07) is already under a payment arrangement.

The balancing payment for 2007-08 is a new debt and will have a seperate payment arrangement.

So she'd contact the office responsible for the original payment arrangement to tell them she cannot afford to pay the £200 per month.

And the Business Payment Support line for the 2007-08 bill.

Mikeyorks

chriiiiiiiis wrote: »

So she'd contact the office responsible for the original payment arrangement to tell them she cannot afford to pay the £200 per month.

And the Business Payment Support line for the 2007-08 bill.

Sorry Chriiiiiis but I disagree. If the existing payment arrangement overlaps to the new year (as it looks to be) then HMRC will treat that as continuity. And it just serves to confuse to deal with 2 parts of HMRC for essentially the same customer reference.

digp

hmmmmmmmm. this is interesting. has an accountant looked at his tax returns?

chriiiiiiiis

I'm not lying.

The two bills will have seperate payment arrangements regardless of whether they overlap.

And although 2007-08 is a new enquiry and should go to the Business Payment Support line, the office who arranged the original payment agreement would not refuse to help if she contacted them.

Think this is turning into a non-issue.