Anyone have experience of tax debt?

robthesnapper

I've just had the tax return completed by out accountant for the business I run. The tax bill payable by end of Jan is nearly £6.5k, which we just don't have to pay.

We've had a terrible winter in terms of work and the money we had put aside for tax has just gone on basic living.

Going forward we'll be OK once our 2011 bookings start to pay up but, for now...we're shafted. Add to that we're just going into default with our credit card debt and are doing a self-administered DMP.

So does anyone have experience of negotiating with the HMRC on how to pay a tax bill over a much longer period of time? They pretty much say they will on their website but obviously everyone's circumstances are different. Just wondered if anyone had gone through a similar thing and come out ok on the other side?

backinbusiness

They will negotiate sensibly as long as you are up front and honest, and contact them first.

(former Tax Inspector)

dancingfairy

Hi - at least one person from the bankruptcy board was made bankrupt by HMRC so you do need to treat this seriously (I'm not saying your not though).
Another thing is that there is a poster who has a debt free diary on the diary section of debt free wannabe who is paying off a large tax bill who may be able to help - perhaps you could send them a personal message? will send you a pm with their name in case they don't want to be made public as such.
maybe try the tax board and see if they have any experience of this as well.
df

robthesnapper

I know this is a top-priority debt and I just want to get it cleared asap. Unfortunately, I can't force people to book us for business (if only!)

In some ways, bankruptcy would solve a lot of problems now, but I think even if they allowed me to continue trading it would screw the business up and we've worked so hard to get it where it is now.

Thanks for the link dancingfairy - I've had a quick look through and will do so again.

I've just spoken with the HMRC Business Payment Support people but they wanted a proposal from me about how much and when I would pay. It was made pretty clear that they could only do so-much and that if any agreement was defaulted on there would be legal proceeedings.

I need to sit down and re-jig the figures. This is just a few days after I did an SOA for the DMP too.

I feel like we're walking on a knife-edge at the moment. We're getting married this year too.

peaceandfreedom

robthesnapper wrote: »

So does anyone have experience of negotiating with the HMRC on how to pay a tax bill over a much longer period of time? They pretty much say they will on their website but obviously everyone's circumstances are different. Just wondered if anyone had gone through a similar thing and come out ok on the other side?

Sympathy here - found myself in a very similar situation a few years ago for very similar reasons. My tax bill was around 9K. I had this saved and more but used it up on living expenses when the work dried up. Foolish I know but then I am still only learning to get smart with money.

I found HMRC very helpful - I contacted them in advance of the payment due date (31st Jan) and explained the situation. In my case, I borrowed the money to pay the tax bill and so settled it during February of that year. They didn't charge me any fines.

I learned my lesson though - in future, tax money is NOT my money to spend, no matter how dire the need!

bargainbetty

I can only echo the comments here - communicate with HMRC honestly and be upfront about everything. They are very used to dealing with problems, and would rather you agreed an affordable plan and stuck with it than get messed about. To be honest, the dealing I have had with their various departments (VAT, PAYE, etc) has always been pleasant and efficient, despite the horror stories.

If you ignore them, they will plough through you..... they have so many people to deal with, they won't stop to look, but if you contact them, deal with things and be upfront, (treat them all like human beings too) they are great.

Good luck!

robthesnapper

Yes, they are FAR nicer to deal with than banks and credit card companies (all of which can !!!!!! off as far as I'm concerned!).

robthesnapper

Oh like the way naughty words become ! symbols.

Robert_Roberston

I'm the same but only owe a small amount really, they were very helpful and I'm on a plan for a year - problem is that it's the same amount I'd save for 10/11 liability which comes due in Jan '12.

It's a problem and you don't want to annoy the HMRC for sure.