Tax Nightmare ?

Julie67

My OH has just received a tax bill for £1900 which they are saying is due now or they will charge interest. Really wasn't expecting this and only just surviving from month to month paying off debt and just about living on a tight budget. I am pretty regular on here and use a lot of the money saving tips. My question is if we ring them will they set up some sort of payment plan or will they insist on the full amount? Has anyone else set up a payment plan with the tax??

g_attrill

Is the bill correct and why was it unexpected, did you file a self-assessment return or did an accountant deal with your paperwork?

Anyway yes, HMRC will usually accept installments but (I think) only over a short period, up to a year perhaps, so if you were to offer anything less than £200 a month you might not have any luck.

Assuming it is correct, this would need to be a priority debt now because HMRC necessarily take a tough line.

pollywoggle

my xOH had a payment plan with the tax people for years after he was s/e and didnt pay any....they were really good and set it up no trouble, they checked his financial stuff every year and payments went up and down as and when there were changes. the only hassle he had was in the last year different bloke dealt with it and he was a g*t so he took out a loan to finish it.

Personnally I would try talking to them before they start chucking great wads of interest on to it, but I'm not an expert and maybe someone with more experience will be along in a minute to help, is there not a forum board on MSE for tax queries. xxx good luck

mrsinvisible

this happened to us last year, as aresult of dwp neglecting to tell taxman that dh had started getting incapacity benefit, so when they were notified they slapped 5 years back tax on him. We arranged to pay £100 per month(ring your local tax office and they will give you the no. of their debt dept. ) they offer dd or payment slips and are quite understanding,( although they charge interest monthly on the outstanding amount they agreed not to put the annual fine for late payment on)

DeBilde

Yes this is a priority debt and HMRC don't mess about with enforcement action if you don't keep up with repayments. Make sure you agree to an affordable amount.

However they are good with paying back monthly, they do try and insist though it is paid off inside a year, as next year they could have the same scenario.

DarkConvict

HMRC will want it paid off within 3 years if in installments, if doing PAYE your tax code will be adjusted and they will take it over 12 months (happening to me come April for £1000)

Tax is a priority debt, this debt along with rent/mortgage, fines etc must be paid before any debts to credit card/loans etc.