70k debt and tax fraud

sa_06

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poppy52

I have quite a large tax debt - about £4500. I went from being self employed to employed last September when I also started a debt management plan because I had huge debts and, although new job was great with good salary, I couldn't make all my payments. I wrote to tax office several times telling them what was going on - and via the debt plan started paying monthly installements of £45. (excess income is paid on pro rata basis to all my many creditors). Tax office never replied but payments carried on being made. A few weeks ago they wrote and asked me to fill in another income/expenditure form to see if my circumstances were still the same. I filled in the form to say yes and posted it. But, a couple of days later letter from revenue threatened me with distraint and bailiffs! I phoned in a panic and they apologised and said this had crossed with my income form! Just had another letter saying that they are doing a full review to see if they can make deductions via my PAYE. These payments would probably be bigger than the £45 I am currently paying which will mean payments to other creditors will get smaller. But I am hoping they will put up with this - tax debt will be paid off sooner so they will get their share later. I have found the Revenue OK if you keep them informed - even though they hardly ever reply they do receive my letters and seem to be fair. I was terrified they would make me bankrupt but because I have a good salary I think they would rather have their money. They won't freeze any interest, however - they are legally not allowed to do this. Be honest with them - don't hide anything. They have a website with loads of detail on what they do to people who owe them money - just search through https://www.inlandrevenue.gov.uk -

MinnieSpender

sa_06 wrote:

Whenever anyone at stores, etc ask me if I want to get a store card I always look them seriously in the eye and say "No, I don't believe in credit cards", always gives them pause for thought!

Good for you! I do that too, but usually add a "don't be silly" to the general conversation! :rotfl:

vickym

Just to put your mind at ease sa-06 it is regular business practice that directors, owners transfer money from their private accounts to the business accounts just to keep cash flow running smoothly - this is not income to the business and so is NOT taxable - if possible try to work out when money was transferred to the business and proof of where it came from - ie bank statements showing transfers credit card transfers etc. That way if the Revenue want proof that it is not income you have it ready for them - and by doing this yourselves - it will save your dad a bit of money in accountants costs.

Hope this helps vicky

Mirtos

Hi. Just wanted to say that my parents are 65 and have just remortgaged, so it may be possible at 50 odd. Worth finding a good broker and asking maybe?